FM to clarify on taxability of BPO earnings
Industry body Assocham on Monday asked the Finance Ministry to clarify whether there would be no taxation on profits earned outside of India due to the facilitation provided by the Indian BPO Industry.
By PTI |
NEW DELHI: Industry body Assocham on Monday asked the Finance Ministry to clarify whether there would be no taxation on profits earned outside of India due to the facilitation provided by the Indian BPO Industry.
India is preferred destination for business process outsourcing (BPO) in high value added services and any ambiguity on BPO taxation laws, particularly in case of tax on profits earned outside of India at times when Indian BPO unit is providing facilitation of services to its overseas counterpart on a temporary basis would create confusion, it said in a release.
The chamber, therefore, seeks clarification in this regard so that Indian industry, particularly the BPO does not repeat its demand in this direction, it said.
Assocham is also of the view that the high value services relating to transfer pricing that concern Indian industry are in the areas of pharmaceuticals, R&D activities carried out by the Indian subsidiary/ branch of the benefit of the global MNC group. Still other areas for transfer pricing include banking and financial sector.
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