India: Subscription fees not taxable under tax treaty with Singapore; e-dispute resolution scheme

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

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).

  • Subscription fees for customer relationship management services under the India-Singapore income tax treaty: The Delhi Bench of the Income-tax Appellate Tribunal held that income earned by the taxpayer from Indian customers with respect to subscription fees for customer relationship management was not taxable as royalty income under Section 9(1)(vi) of the Income-tax Act, 1961 or under Article 12 of the India-Singapore income tax treaty. The tribunal observed that all equipment and machines relating to the services provided by the taxpayer were under its control and were outside India and the subscribers do not have any physical access to the equipment through which services were provided. The case is: Singapore Pte Ltd. Read an April 2022 report [PDF 438 KB]

  • Tax relief on income arising from foreign retirement funds: Budget 2020-21 introduced a new section wherein income accrued to a resident individual from an overseas retirement benefit account (when income from such account is not taxable on accrual basis but taxable at the time of withdrawal or redemption in the other country) opened by such individual while being a non-resident in India and resident in such overseas jurisdiction, would be taxed in the manner and in the year as prescribed. The Central Board of Direct Taxes (CBDT) has now inserted a new rule detailing the manner of taxation of income from retirement benefits account maintained in a notified country from tax year 2021-22 onwards. Read an April 2022 report [PDF 419 KB]

  • CBDT notifies e-Dispute Resolution Scheme, 2022: The Finance Act, 2021 introduced a new scheme under Section 245MA to provide for the creation of dispute resolution committee (DRC). The DRC will help to resolve disputes of small taxpayers having a total income of up to INR 50 lakh and a disputed income of up to INR 10 lakh. The DRC will have authority to reduce or waive penalties or give immunity from prosecution for any offence punishable under the Income-tax Act, 1961. The CBDT has issued a notification prescribing e-Dispute Resolution Scheme, 2022 and its rules. Read an April 2022 report [PDF 319 KB]


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