--- title: "Corporate & International Tax Advisory" date: 2024-02-14 author: "KM Team" url: https://acuitylaw.co.in/practice-areas/corporate-international-tax-advisory/ --- # Corporate & International Tax Advisory ![Corporate & International Tax Advisory](https://acuitylaw.co.in/wp-content/uploads/2024/02/148076-1-e1752557850890.jpg) ### OVERVIEW Direct Tax is a critical consideration for deal structuring, [M&A](https://acuitylaw.co.in/practice-areas/mergers-and-acquisitions/) as well as conducting regular business. The corporate and international tax advisory practice encompasses a wide range of clientele such as corporates, limited liability partnerships, funds, trusts and HNIs. ### ROLE As part of the corporate and international tax advisory practice, Acuity Law provides the following services to clients: #### **1. Corporate and international tax covering analysis of:** - Double taxation avoidance agreement interpretations - Holding company structures in foreign jurisdictions - Strategies for mitigating Permanent Establishment exposure - Place of Effective Management and [GAAR impact](https://en.wikipedia.org/wiki/General_anti-avoidance_rule_(India)) - Dispute assistance (litigation strategy including drafting and appearance) - Withholding taxation, compliance, and reporting requirements - Profit distribution methods from a tax and regulatory angle #### **2. Strategies for acquisitions, mergers, divestitures, diversification or consolidation of businesses to achieve desired commercial goals effectively including:** - Inbound structuring for entry into India, including jurisdiction analysis - Externalization structures/ outbound structuring for investment outside India - Fund taxation (including Offshore Fund and AIF) and Carry structuring - Tax Due Diligence on Indian targets - Group holding structures - Profit repatriation strategies for stakeholders - Endowment planning / wealth planning strategies   ##### Income Tax Indian Income Tax Law is governed by the Income-tax Act, 1961 (Act) and rules made thereunder. Amongst other things, the Act chiefly governs the situs of taxation, tax residency, charge of tax, classification of income, incentives / tax holidays / exemptions, tax rates and withholding of taxes, transfer pricing (or base erosion of profits test) and other anti-avoidance provisions. India has also entered into double taxation avoidance agreements with various countries. Here we answer some of the common queries relating to applicability and scope of the Act. [View Document](https://acuitylaw.co.in/wp-content/uploads/2024/02/FAQ-7-Indian-Income-Tax-Law.pdf) ### Related Posts [![](https://acuitylaw.co.in/wp-content/uploads/2024/04/images.jpg)](https://acuitylaw.co.in/no-virtual-service-permanent-establishment-in-india-in-the-absence-of-a-specific-provision/) April 2, 2024 ### [No virtual service permanent establishment in India in the absence of a specific provision ](https://acuitylaw.co.in/no-virtual-service-permanent-establishment-in-india-in-the-absence-of-a-specific-provision/) The advent of the Digital economy has led to the introduction of various taxation issues. One such issue being creation of a virtual permanent establishment (PE) in a country, where the services are rendered without having any physical presence. The Income Tax Appellate Tribunal, Delhi (Tribunal), recently has dealt with the issue of creation of… [Read more](https://acuitylaw.co.in/no-virtual-service-permanent-establishment-in-india-in-the-absence-of-a-specific-provision/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thumbnail-19.png)](https://acuitylaw.co.in/india-union-budget-2023-24-key-tax-proposals/) February 7, 2023 ### [India Union Budget 2023-24: Key Tax Proposals](https://acuitylaw.co.in/india-union-budget-2023-24-key-tax-proposals/) The Honourable Finance Minister of India presented the Union Budget 2023-24 on 01 February, 2023.  Solidifying the vision of “Make in India” and “Atmanirbhar Bharat”, the budget proposals include various measures from a tax perspective to provide necessary impetus to both individuals and corporates. We are pleased to share a summary of the key budget… [Read more](https://acuitylaw.co.in/india-union-budget-2023-24-key-tax-proposals/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/tax2-1019x573-1.jpg)](https://acuitylaw.co.in/most-favored-nation-clause-important-ruling-of-the-honble-supreme-court-of-india/) December 13, 2023 ### [“Most Favored Nation” clause – Important ruling of the Hon’ble Supreme Court of India](https://acuitylaw.co.in/most-favored-nation-clause-important-ruling-of-the-honble-supreme-court-of-india/) The Hon’ble Supreme Court of India (Apex Court) has recently pronounced a landmark ruling[ᶦ]  on treaty interpretation with a specific reference to Most Favored Nation (MFN) clause contained in various Double Taxation Avoidance Agreements (DTAA) entered by India with Organization for Economic Cooperation and Development (OECD) member countries. The Apex Court ruled that a Notification under… [Read more](https://acuitylaw.co.in/most-favored-nation-clause-important-ruling-of-the-honble-supreme-court-of-india/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/image-asset-1.jpg)](https://acuitylaw.co.in/share-capital-money-whether-revenue-or-capital-receipt-2/) January 17, 2024 ### [Share capital money – whether revenue or capital receipt?](https://acuitylaw.co.in/share-capital-money-whether-revenue-or-capital-receipt-2/) A long-standing debate that continues to hold its ground even today is whether investment in a company's shares can be construed as income and thus liable to tax in the hands of the investee company? Ideally, investment in shares of a company is a capital account transaction and thus, is a capital receipt, which is… [Read more](https://acuitylaw.co.in/share-capital-money-whether-revenue-or-capital-receipt-2/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/image0_0-2.jpg)](https://acuitylaw.co.in/indirect-transfers-evolution-of-law-recent-dicta/) December 27, 2023 ### [Indirect Transfers – Evolution of Law & Recent Dicta](https://acuitylaw.co.in/indirect-transfers-evolution-of-law-recent-dicta/) Indirect transfer controversy has been the most discussed issue in the Indian tax ecosystem. It began when Vodafone International Holdings Ltd acquired an indirect holding in an Indian entity, to the recent ruling of the Hon’ble High Court of Delhi in Augustus Capital Pte Ltdᶦ (dealing with small investor exemption). The controversy has spanned for over… [Read more](https://acuitylaw.co.in/indirect-transfers-evolution-of-law-recent-dicta/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-25.png)](https://acuitylaw.co.in/equalisation-levy-a-welcome-judgment-on-jurisdiction-and-applicability/) November 24, 2022 ### [Equalisation levy – A welcome judgment on jurisdiction and applicability](https://acuitylaw.co.in/equalisation-levy-a-welcome-judgment-on-jurisdiction-and-applicability/) Equalisation levy was introduced in India by the Finance Act, 2016 with a view to tax income earned by a non-resident on specified services - being online advertisement, provision of digital advertisement space or any other facility or service for the purpose of online advertisement. Subsequently, the Equalisation levy was also introduced on e-commerce supply… [Read more](https://acuitylaw.co.in/equalisation-levy-a-welcome-judgment-on-jurisdiction-and-applicability/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Untitleddesign34.png)](https://acuitylaw.co.in/union-budget-march-2020/) March 25, 2020 ### [Union Budget – March 2020](https://acuitylaw.co.in/union-budget-march-2020/) The Union Budget 2020-21 was presented on February 1, 2020 with an overarching theme of facilitating ease of living through reforms in governance and the financial sector. Given the current global scenario of a potential slowdown in economic growth, the economic development template includes a renewed emphasis on industry, infrastructure and new economy. Sharing our… [Read more](https://acuitylaw.co.in/union-budget-march-2020/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/03/business-man-financial-inspector-secretary-making-report-calculating-checking-balance-internal-revenue-service-inspector-checking-document-audit-concept_1423-126.jpg)](https://acuitylaw.co.in/withholding-tax-obligation-on-telecom-companies-welcome-relief-by-honble-supreme-court/) March 12, 2024 ### [Withholding tax obligation on telecom companies – welcome relief by Hon’ble Supreme Court](https://acuitylaw.co.in/withholding-tax-obligation-on-telecom-companies-welcome-relief-by-honble-supreme-court/) Obligation (in the hands of telecom companies) to withhold taxes under Section 194H of the Income-tax Act, 1961 (IT Act) on discounts given to SIM card distributors has been a matter of long drawn dispute. Conflicting rulings have been pronounced by different High Courts and the issue has now attained finality by the judgment of… [Read more](https://acuitylaw.co.in/withholding-tax-obligation-on-telecom-companies-welcome-relief-by-honble-supreme-court/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/04/closeup-hand-signing-paper-workspace_53876-31566-e1759819552322.jpg)](https://acuitylaw.co.in/compulsorily-convertible-debentures-whether-debt-or-equity/) April 9, 2024 ### [Compulsorily Convertible Debentures: Whether debt or equity?](https://acuitylaw.co.in/compulsorily-convertible-debentures-whether-debt-or-equity/) Compulsorily Convertible Debentures (CCDs), a hybrid instrument, has gained prominence in the last two decades. However, its classification as equity or debt has been the subject of discussions, mainly due to conflicting perspectives under different laws. This initial divergence surfaced from the framework of guidelines under the Foreign Exchange Management Act, 1999 (FEMA), which deemed… [Read more](https://acuitylaw.co.in/compulsorily-convertible-debentures-whether-debt-or-equity/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/online-payment-concept-with-mobile-phone-paper-receipt-electron-bill-billing-system_39422-723-1.jpg)](https://acuitylaw.co.in/government-of-haryana-amnesty-scheme-for-outstanding-dues-as-on-30-june-2017-2/) January 19, 2024 ### [Government of Haryana – Amnesty Scheme for Outstanding Dues as on 30 June 2017](https://acuitylaw.co.in/government-of-haryana-amnesty-scheme-for-outstanding-dues-as-on-30-june-2017-2/) Government of Haryana - Amnesty Scheme for Outstanding Dues as on 30 June 2017  The Excise and Taxation Department, Haryana Government has notified “Haryana One-Time Settlement Amnesty Scheme for Recovery of Outstanding Dues, 2023” (‘Amnesty Scheme’). The Amnesty Scheme will be operational from 01 January 2024, and will continue for a period of 90 (ninety)… [Read more](https://acuitylaw.co.in/government-of-haryana-amnesty-scheme-for-outstanding-dues-as-on-30-june-2017-2/) [![Regulatory Update: Securities Contracts (Regulation) Amendment Rules, 2024](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-32.png)](https://acuitylaw.co.in/kmp-norms-do-they-apply-to-private-companies/) October 4, 2022 ### [KMP norms: Do they apply to private companies?](https://acuitylaw.co.in/kmp-norms-do-they-apply-to-private-companies/) In 2005, the Government of India had constituted an expert committee headed by Dr. J.J. Irani to advise on revising and modernizing the Companies Act, 1956. The committee in its report (JJ Irani Report)[i] gave its views on various issues including on appointment, duties and obligations of the Key Managerial Personnel (KMP). Pursuant to the recommendations… [Read more](https://acuitylaw.co.in/kmp-norms-do-they-apply-to-private-companies/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/12.jpg)](https://acuitylaw.co.in/angel-tax-in-india/) March 25, 2020 ### [‘Angel Tax’ in India](https://acuitylaw.co.in/angel-tax-in-india/) Recent Developments on ‘Angel-Tax’ in India  Brief background  The term ’Angel-Tax’ does not technically exist under the Indian Income-tax Act, 1961 (‘IT Act’).  It is the fallout of an extreme interpretation and regressive application of an already existing provision in the IT Act to moneys raised by ‘Startups’ in India by way of equity share… [Read more](https://acuitylaw.co.in/angel-tax-in-india/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/04/businessman-examining-papers-table-1-1024x439.jpg)](https://acuitylaw.co.in/sale-consideration-deposited-in-escrow-account-event-of-taxability/) April 19, 2024 ### [Sale consideration deposited in Escrow Account – Event of Taxability](https://acuitylaw.co.in/sale-consideration-deposited-in-escrow-account-event-of-taxability/) Corporate transactions and their related intricacies have always been a subject of frequent discussions in the corporate world. With changing commercials globally, there is an innovation in the commercial terms being agreed between the parties. With growing regulatory concerns and rise in tax claims with no certainty, a need arises to protect the interest of… [Read more](https://acuitylaw.co.in/sale-consideration-deposited-in-escrow-account-event-of-taxability/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/05/Untitled-design-3-1024x1024.jpg)](https://acuitylaw.co.in/revenue-not-estopped-from-examining-the-taxability-of-receipts-other-than-attributable-to-service-pe/) July 16, 2024 ### [Revenue not estopped from examining the taxability of receipts, other than attributable to service PE](https://acuitylaw.co.in/revenue-not-estopped-from-examining-the-taxability-of-receipts-other-than-attributable-to-service-pe/) In this globalized economy, individuals and businesses often operate across borders, leading to potential double taxation issues, which is prevented by entering double taxation avoidance agreements (DTAA) between various countries. Concepts such as permanent establishment (PE) and “make available” are the creations of DTAA, which have been subject to significant litigation in India. PE means… [Read more](https://acuitylaw.co.in/revenue-not-estopped-from-examining-the-taxability-of-receipts-other-than-attributable-to-service-pe/) --- ## Acuity Law - Website: https://acuitylaw.co.in - Contact: richagotech@gmail.com