News & Media 6th May 2024

Overseas digital firms in a tax fix

Authors

Dipesh Jain Partner | Mumbai

Latest Thought Leadership

News & Media 25th Jun 2024

Misleading Ads: Ambiguous Self-Declaration Rules Leave Advertisers in Compliance Limbo

Read More
News & Media 25th Jun 2024

Budget 2024 expectations: Will the government increase Section 80C limit

Read More
News & Media 25th Jun 2024

MC Exclusive: FSSAI calls for strict compliance of food safety protocols after alarming contamination reports

Read More
News & Media 25th Jun 2024

Budget 2024: AIFs seek tax parity with FPIs

Read More

The finance ministry has in recent weeks confronted many overseas digital firms drawing significant business income in India, without paying any or due tax in the country, by deftly circumventing the permanent establishment (PE) rule.

The ministry has invoked the principle of source-based taxation under the Income Tax Act, to question the “organisational structures” built by them to avoid paying taxes on the income earned from operations here, official sources said, on condition of anonymity.

Against this backdrop, Dipesh Jain, Partner, Economic Laws Practice (ELP) has been quoted in an article, “Overseas digital firms in a tax fix” authored by Manu Kaushik & Priyansh Verma published in Financial Express (India).

Read the detailed story here