India: Effects of GST returns and portal; incentives for automobile production

The KPMG member firm in India has prepared reports about recent tax developments

The KPMG member firm in India has prepared reports about recent tax developments

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).

  • Profits of UAE-based subsidiary (a shell company) not taxable in India when no violation of law: The Ahmedabad Bench of the Income-tax Appellate Tribunal held that even though a UAE-based subsidiary was a “shell company,” its profits were not taxable in India because the activities of that shell company were not illegal in nature given that the company did not violate any provisions of law. Read a November 2021 report [PDF 346 KB]

  • India Supreme Court affirms GST common portal only a facilitator for information and not the primary source for self-assessment: The Delhi High Court held that there was no reason to restrict rectification of goods and services tax (GST) returns and accordingly permitted Form GSTR-3B to be rectified. This decision was not upheld by the Supreme Court of India, which held that not making Form GSTR-2A operational was not a basis to allow revision of the GST returns. Read a November 2021 report [PDF 331 KB]

  • Application form for automobile production-linked incentives: The Union Cabinet approved a “production-linked incentive” scheme for automobiles and auto components. The scheme proposes incentives that would be provided over a period of five years. The Ministry of Heavy Industries announced the format of the application form and a list of the advanced automotive technology products. Read a November 2021 report [PDF 298 KB]

  • Provident fund withdrawal payments to Singapore nationals: The Employees’ Provident Fund Organisation directed its field offices to pay provident fund withdrawal benefits to Singapore nationals on the date that they leave service in India. Claims submitted by Singapore nationals can be processed by treating the India-Singapore comprehensive economic cooperation agreement on par with the social security agreements signed by India. Read a November 2021 report [PDF 322 KB]


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