International Taxation for Companies in India
Transfer pricing rarely stands alone. We provide international taxation services for companies in India covering permanent establishment exposure, withholding tax and treaty positions, thin capitalisation and commercially workable cross-border tax structuring.
Transfer pricing and international tax, handled together
International taxation services for companies in India cover permanent establishment risk, withholding tax and DTAA treaty benefits, Section 94B thin capitalisation, where interest deductions on qualifying related-party debt may be limited with reference to 30% of EBITDA, and cross-border structuring.
A related-party transaction rarely raises only a transfer pricing question. The same arrangement may also create tax withholding, permanent establishment, profit attribution, interest deductibility or treaty eligibility issues. Analysing each subject separately can result in inconsistent positions across agreements, tax returns, transfer pricing documentation and remittance paperwork.
Our approach connects the commercial arrangement with the applicable provisions of Indian tax law and the relevant Double Taxation Avoidance Agreement. This allows management teams to understand the complete tax position before making payments, signing contracts, funding an Indian entity or establishing a more substantial presence in India.
Who this service applies to
Our international taxation advisory is suitable for Indian entities of multinational groups, foreign companies operating or investing in India, Indian businesses expanding overseas and groups restructuring cross-border ownership, financing or service arrangements.
We also assist finance teams that require a coordinated position between tax withholding, treaty documentation and international transaction transfer pricing .
The complete cross-border tax picture
We review the legal, financial and operational facts behind the transaction to develop a practical international tax position that can be implemented consistently.
Permanent Establishment and Attribution
We assess whether the activities of a foreign enterprise may create a permanent establishment in India under domestic law and the applicable DTAA. The review may cover fixed-place operations, construction or installation projects, service arrangements, dependent agents, employees working in India and contractual authority.
Where a potential permanent establishment exists, we examine profit attribution, functional substance, local activities, risks and assets so that the income attributed to India is supported by the underlying business facts.
Withholding Tax and DTAA Services
Cross-border payments can attract different withholding obligations depending on whether they represent royalties, interest, fees for technical services, business income, reimbursements or another category of income.
Our withholding tax and DTAA services include payment characterisation, treaty analysis, beneficial ownership and supporting documentation reviews, Form 15CA and Form 15CB assistance, and support for lower or nil withholding applications where appropriate.
Section 94B Thin Capitalisation
Section 94B may restrict the deduction of qualifying interest or similar expenditure incurred by an Indian company or an Indian permanent establishment on certain debt involving a non-resident associated enterprise.
We analyse the ₹1 crore applicability threshold, associated enterprise relationship, guarantees or matching-fund arrangements, EBITDA-based limitation and available carry-forward of restricted interest. We also align the analysis with the group's financing agreements and transfer pricing support for the interest rate.
Cross-Border Tax Structuring India
We assist with tax-efficient and commercially sustainable structures for inbound investment, overseas expansion, group financing, intellectual property arrangements, business reorganisations and intercompany service models.
The objective is not merely to identify a low-tax route. We consider substance, treaty access, withholding leakage, permanent establishment risk, transfer pricing, interest deductibility, compliance costs and the ability to defend the structure during a tax review.
A single, integrated international tax position
Our process converts complex domestic and treaty provisions into a documented position that can be followed by tax, finance and legal teams.
Structure Review
We map the ownership structure, transaction flow, contracts, payment terms, financing arrangements and actual functions performed by the parties in each jurisdiction.
Risk Assessment
We identify permanent establishment, withholding tax, treaty, beneficial ownership, profit attribution and interest-limitation exposures before prioritising the issues requiring action.
Treaty and Tax Analysis
We analyse the applicable DTAA alongside Indian domestic tax rules and review the documentation required to support the intended tax treatment.
Integrated Advisory
We align transfer pricing, withholding tax, permanent establishment and structuring positions into one coherent recommendation with clear compliance and implementation steps.
One team, one consistent cross-border tax position
We combine transfer pricing knowledge, treaty interpretation and practical compliance support so that each part of the arrangement tells the same commercial and tax story.
Integrated Advisory
Transfer pricing and international taxation are reviewed together, helping prevent contradictions between agreements, withholding positions, tax filings and transfer pricing documentation.
Treaty and Industry Understanding
We evaluate treaty provisions in the context of the group's actual industry, functions and operating model, including specialised considerations relevant to the BFSI industry .
Legal and Tax Coordination
Lawyers and Chartered Accountants can work from the same facts and transaction documents, producing advice that considers both legal enforceability and tax implementation.
International taxation questions
Need an integrated transfer pricing and international tax review?
Book a free consultation to discuss your cross-border structure, payments and potential Indian tax exposure.
Related: International Transaction Transfer Pricing · BFSI Transfer Pricing