NISHITH.TV
  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • Munich
  • New York

Locations

  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • Munich
  • New York
  • Content
  • Home
  • ABOUT US
  • NDA in the Media
  • Areas of Service
  • Research and Articles
  • Opportunities
  • Contact
  • NDACloud
  • Client Access
  • Member Access
  • Events and Calender
  • How we perform
  • Knowledge anywhere, anytime
  • See our recent deals
  • Up to date legal developments
  • Case studies in M&A

Research and Articles

HTMLPDF

  • Research at NDA
  • Research Papers
  • Research Articles
  • NDA Think Tanks
  • NDA Hotline
  • New Ali Gunjan
  • Japan Desk ジャパンデスク

NDA-Hotline


  • Capital Markets Hotline
  • Companies Act Series
  • Climate Change Related Legal Issues
  • Competition Law Hotline
  • Corpsec Hotline
  • Court Corner
  • Cross Examination
  • Deal Destination
  • Debt Funding in India Series
  • Dispute Resolution Hotline
  • Education Sector Hotline
  • FEMA Hotline
  • Financial Service Update
  • Food & Beverages Hotline
  • Funds Hotline
  • Gaming Law Wrap
  • GIFT City Express
  • Green Hotline
  • HR Law Hotline
  • iCe Hotline
  • Insolvency and Bankruptcy Hotline
  • International Trade Hotlines
  • Investment Funds: Monthly Digest
  • IP Hotline
  • IP Lab
  • Legal Update
  • Lit Corner
  • M&A Disputes Series
  • M&A Hotline
  • M&A Interactive
  • Media Hotline
  • New Publication
  • Other Hotline
  • Pharma & Healthcare Update
  • Private Client Wrap
  • Private Debt Hotline
  • Private Equity Corner
  • Real Estate Update
  • Realty Check
  • Regulatory Digest
  • Regulatory Hotline
  • Renewable Corner
  • SEZ Hotline
  • Social Sector Hotline
  • Tax Hotline
  • Technology & Tax Series
  • Technology Law Analysis
  • Telecom Hotline
  • The Startups Series
  • White Collar and Investigations Practice
  • Yes, Governance Matters.
  • Japan Desk ジャパンデスク

Tax Hotline

September 17, 2003

Task force examines the issue of taxing foreign clients of Indian BPO service providers

The Indian Government has recently set up a task force for examining whether a foreign company, that has outsourced some of its business operations to a BPO service provider in India, would be subject to tax in India. Incidentally, the Indian BPO service provider itself is generally eligible for a tax holiday benefit up to March 31, 2009.

The issue of whether the foreign company would be subject to tax has become relevant in view of the recent amendment to the meaning of the term 'business connection' in the Finance Act, 2003, wherein the relationship between an Indian agent and a foreign entity can be termed as a business connection, thereby making it possible under certain circumstances to subject the foreign company to tax in India.

For BPO service providers that provide services to a large number of clients, there does not seem to be any cause for worry as such providers are unlikely to constitute ‘dependent agents’ of their clients. However, the task force is examining whether clients of captive BPO service providers could be brought within the Indian tax net. It is likely that transfer-pricing norms may also be examined and rules for transactions between the captive BPO service provider in India and the foreign parent may be tightened.

Industry representatives, in their meeting with the task force, have strongly suggested a cautious approach to any amendment in the tax regime to ensure that the Indian BPO sector does not lose out to competitors in other jurisdictions.

For more information, please Click here to refer to the article that was recently published in Express Computer, a leading publication catering to the IT segment. The views of Shefali Goradia, (Head - International tax practice) and Vaibhav Parikh, (Head - Technology law practice ) of our firm have been reflected in this report.

Mission and Vision


Distinctly Different

What's New


Manner of computation of Net Winnings prescribed for online gaming companies!
Tax Hotline: May 30,2023
Time for Evolution of Sport Adjudication in India
New Publication : May 29,2023

Events


Webinars

Generative Artificial Intelligence: Legal, Ethical and Policy Implications
June 01,2023 - June 01,2023

Seminar

Winning Together: Exploring the dynamics of India-Singapore relations for Fund Structuring and Deal Making
April 26,2023 - April 26,2023

This event is over. For event material please click here


Round Table

Investing In Net Zero
July 22,2022 - July 22,2022

This event is over. For event material please click here

News Roundup


News Articles

Naked Licensing in Trademarks
April 14,2023

Quotes

AI holds massive potential for malicious use, but who will be held accountable?
May 25,2023

Newsletters


Tax Hotline

Manner of computation of Net Winnings prescribed for online gaming companies!
May 30,2023

New Publication

Time for Evolution of Sport Adjudication in India
May 29,2023

New Publication

Sovereign Wealth Funds & Pension Funds-Investments into India
May 26,2023

  • Disclaimer
  • Content
  • Feedback
  • Walkthrough
  • Subscribe
Nishith Desai Associates@2016 All rights reserved.