India Tax News
It has been reported that Kuwait and Saudi Arabia, which are respectively negotiating tax treaties with India, are seeking to have capital gains arising from the sale/transfer of moveable property taxed in the state of residence. This request for residence-based taxation for these capital gains appears to stem from the Comprehensive Economic Cooperation Agreement (CEPA) between India and Singapore that was signed on 29 June 2005. The CEPA includes a protocol to the existing India-Singapore tax treaty, whereby Article 13 was amended to provide that capital gains on sale of shares derived by a resident of one of the states will only be taxable in the resident country. Accordingly, capital gains arising to a Singaporean resident on sale of shares in Indian companies would not be liable to tax in India.
21 September 2005
Tribunal rules that fees for credit ratings services taxable as "royalty"
21 September 2005
On 12 July 2005 India announced that negotiations are underway for a first-time tax treaty between India and Luxembourg.
3 August 2005
India and Singapore signed a protocol dated 29 June 2005. This protocol will form part of the India-Singapore tax treaty dated 24 January 1994, and will enter into force and be effective as from 1 August 2005.
3 August 2005
The tax treaty on income of 3 November 2003, entered into force on 4 March 2005, and will be effective as from 1 January 2006 in Hungary and 1 April 2006 in India. It will replace the tax treaty of 30 October 1986.
1 May 2005