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Your Foreign Subsidiary Might Receive a Demand from Indian Taxman

Outbound subsidiaries of Indian MNCs carry a threat of being liable fully to Indian income tax if the control and management of their affairs is wholly in India. In such a case they would become Indian tax resident and fully exposed to corporate tax here. This issue has caught fire in recent past and Indian MNCs need to be careful about it.This article traces the judicial developments in this regard and suggests measures to mitigate the tax exposure