India re-affirmed its commitment to the OECD/G20 Inclusive Framework deal, along with 132 other countries, to address the tax challenges arising from the digitalization of the economy (“IF Agreement”). The IF Agreement is not only a step away from unilateral levies and trade war but is also a significant step towards crystalizing the international taxation rules for the future. While, countries have reached to a broad agreement, key details are yet to be finalized.
The IF Agreement comes amid escalating trade tensions that resulted from the unilateral imposition of digital services taxes by several countries, including India. It is important to note that US not only is the largest trade partner but is also the only country that has a trade deficit with India amongst the top 10 countries that India trades with. Development of trade and economic relation with the US has been one of the highlights of the recent meeting between Prime Minister, Mr. Narendra Modi and President, Mr. Joe Biden. The US has announced sanctions against India, which may affect several industries unrelated to the scope of the equalization levy. However, these sanctions have been suspended to make space for negotiations for a consensus solution.
Tax treaties were intended to encourage cross border trade and investments. The importance and need of FDI along with tax certainty has come to the fore again in recent times. Further, Indian SAAS and tech companies seem to be ready to expand globally in the near future. With India becoming home to several unicorns and given the importance of tax certainty the assessment may need to include potential impact on Indian companies as well over the next 20 years or more.
In this backdrop, we, alongwith Centre for Tax Laws (CTL), NALSAR, are happy to announce launch of our publication “Tax, Trade and Investments – An India Policy perspective”. The paper delves into the status of India’s economy in the backdrop of COVID-19, India’s goals from a trade, tax and investment policy perspective and the considerations for a cohesive approach that balances the varying Indian interests.
Benchmark Litigation Asia-Pacific: Tier 1 for Government & Regulatory and Tax 2020, 2019, 2018
Legal500 Asia-Pacific: Tier 1 for Tax, Investment Funds, Labour & Employment and TMT 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012
Chambers and Partners Asia-Pacific: Band 1 for Employment, Lifesciences, Tax and TMT 2020, 2019, 2018, 2017, 2016, 2015
IFLR1000: Tier 1 for Private Equity and Project Development: Telecommunications Networks. 2020, 2019, 2018, 2017, 2014
AsiaLaw Asia-Pacific Guide 2020: Ranked ‘Outstanding’ for TMT, Labour & Employment, Private Equity, Regulatory and Tax
FT Innovative Lawyers Asia Pacific 2019 Awards: NDA ranked 2nd in the Most Innovative Law Firm category (Asia-Pacific Headquartered)
RSG-Financial Times: India’s Most Innovative Law Firm 2019, 2017, 2016, 2015, 2014
Who’s Who Legal 2020:
• Nishith Desai- Thought leader (Corporate Tax 2020, India 2020), Global leaders (Private Funds 2020)
• Vikram Shroff-Global Leaders (Labour & Employment 2020, Pensions & Benefits 2020)
• Milind Antani- Pharma & Healthcare – only Indian Lawyer to be recognized for ‘Life sciences - Regulatory,’ for 5 years consecutively
The contents of this publication should not be construed as legal opinion. View detailed disclaimer.
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