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India : Taxing Offshore Transfers – India Income Tax implications to drafting

Indian income tax law taxes offshore share transfers-i.e., where the seller (“Seller”) and the company whose shares are being sold (“Target Company”) are both outside India-if the shares derive their value substantially from India. This provision of Indian law is not common in other tax systems, and is often overlooked when considering offshore transactions. However, it is important for the legal team to keep these provisions in mind when drafting and finalizing the definitive agreements, as they impose obligations on almost all the parties involved, non-compliance with which can attract heavy penalties. Under the Indian Income Tax Act, 1961 (“ITA”), all income of an Indian tax resident is taxable in India. However, for...To read the full article, please see the PDF file

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鈴木 多恵子

Taeko heads the firm’s India practice, and advises Japanese corporations investing and doing business in India, with a special focus on dispute resolution (litigation and arbitration), and regulatory work (criminal and competition related matters). She also handles jurisdictions such as Sri Lanka, Pakistan, the UAE, Bangladesh, Nepal, Maldives, and other countries in South Asia, the Middle East and Africa.