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Payment received for intra-group services, reimbursement of expenses, not taxable in India

Global Tax Update : January 2018 / India

The Kolkata Tribunal has held that where services are rendered by third parties and such costs are discharged by foreign group companies initially and later charged back at cost to Indian entities, since the foreign group entity has not provided any service and there is no income element in the amounts charged back, there is no requirement for Indian company to withhold taxes.

This newsletter explains the following topics;

  1. Payment received for intra-group services, reimbursement of expenses, not taxable in India
  2. Date of reversal of provisions important to decide whether income in respect of year-end provisions has accrued to payee or not
  3. Extension of due date for filing GST returns

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>> Click for Japanese [グループ内役務提供(Intra Group Service)に係る支払の受領、費用の精算は、インドにおいて課税対象外 ほか]

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