Robert Langston and Maurice von Bertele outline the tax issues faced by UK companies investing in India
A UK company investing in India will typically face higher tax rates than in the UK and therefore additional tax cost even if the Indian tax can be credited against the UK tax arising. The practice guide on double tax relief in Tax Journal (dated 9 August 2010) provides some guidelines on how to reduce excess foreign taxes arising.
However this article also considers some of the peculiar features of doing business in India including:
when a taxable presence is created including the ‘service permanent establishment’;
restrictions on inward investment;
the process for obtaining benefits under a double tax agreement; and
proposed changes to the Indian Direct Tax Code from 1 April 2012.
Branch v subsidiary
A non-resident company can operate in India in various forms:
a liaison office...
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Robert Langston and Maurice von Bertele outline the tax issues faced by UK companies investing in India
A UK company investing in India will typically face higher tax rates than in the UK and therefore additional tax cost even if the Indian tax can be credited against the UK tax arising. The practice guide on double tax relief in Tax Journal (dated 9 August 2010) provides some guidelines on how to reduce excess foreign taxes arising.
However this article also considers some of the peculiar features of doing business in India including:
when a taxable presence is created including the ‘service permanent establishment’;
restrictions on inward investment;
the process for obtaining benefits under a double tax agreement; and
proposed changes to the Indian Direct Tax Code from 1 April 2012.
Branch v subsidiary
A non-resident company can operate in India in various forms:
a liaison office...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
