No Benefits To Foreign Firms Trying To Dodge Indian Tax Laws, Rules Madras High Court
by M R Subramani - Dec 23, 2020 10:23 AM
Madras High Court (Picture Credits- Facebook/Readinfo)
Snapshot
Now, any transfer of shares by companies registered in India to a step-down subsidiary â a unit of the subsidiary â cannot be termed a valid gift.
The Madras High Court has ruled that the Union government need not provide any tax benefit to foreign companies investing in India if the objective of the investment is to dodge domestic tax laws or such attempts are made.
A Madras High Court bench comprising Justices TS Sivagnanam and V Bhavani Subbaroyan has also ruled that any transfer of shares by companies registered in India to a step-down subsidiary (a unit of the subsidiary) cannot be termed a valid gift.