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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Authors
Miwako Shirai
- Associate
- Tokyo
Varsha Bhattacharya is an India and New York qualified lawyer with over ten years’ experience with India and South Asia-focused deals. She has advised on cross-border and domestic M&A, structuring exercises - including fund formation, private equity entries and exits, tax implications of cross-border transactional arrangements, and on estate planning. She has also advised and represented clients in tax disputes before various forums in India, ranging from representations before tax officers to the Supreme Court of India.
She completed her B.A., LL.B. (Hons) from the West Bengal National University of Juridical Sciences, Kolkata, and her LL.M. from Harvard Law School.
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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.