Reports about recent court decisions
The KPMG member firm in India has prepared reports about the following court decisions (read more at the hyperlinks provided below).
The Delhi High Court held that payments to nonresidents having no permanent establishment in India for the purchase of goods prior to 2014 were not subject to tax in India under the non-discrimination clauses under the India-United States and the India-Japan tax treaties. The taxpayer’s deductions for such payments were therefore upheld.
The case is: Mitsubishi Corporation India P. Ltd. Read a March 2024 report [PDF 297 KB]
The Supreme Court held that in the absence of a principal-agent relationship between a telecom company and its distributor, the discount offered by the telecom company on its SIM cards or recharge coupons to the distributor is not a commission for withholding tax purposes.
The case is: Bharti Cellular Limited. Read a March 2024 report [PDF 399 KB]