Worldwide: Tax

The Black Money Act of 2015 introduced stringent measures to tax undisclosed foreign income and assets held by resident taxpayers in India. What are the consequences for failing to report foreign income or assets, and how does this legislation impact tax compliance for individuals with international holdings?

India is a key destination for cross-border investments, acquisitions and commercial transactions. In this regard, several foreign law firms partner or collaborate with Indian law firms and financial advisors or act independently to advise Indian clients and multinational groups on transactions, arbitrations and various matters requiring foreign law inputs. Such collaborations have resulted in an increased frequency of foreign law firm personnel visits to India.

The European Commission issued, on 30 April, an official Guidance Note to clarify the customs and tax treatment of pleasure craft — boats, vessels and private aircraft – under EU customs and VAT rules across all 27 Member States.

As global capabilities center transition from basic tasks of IT support to advanced innovative technology hubs characterized by AI model training & use of evidence-based research & development, this blog discusses how such functions must be evaluated for purposes of transfer pricing, issues regarding DEMPE, and documentation gaps that and contribute significantly to disputes.

This quarterly tax update examines critical judicial rulings that will shape international tax planning and M&A structuring in India, including the Delhi High Court's landmark decision on deputation arrangements and the Mumbai Tribunal's denial of loss carry-forward in demergers worth INR 2.4 billion.

Global Capability Centres in India have evolved from basic support operations into strategic hubs handling high-value functions like R&D, analytics, and procurement. As these centres scale and take on more complex responsibilities, multinational enterprises face heightened tax risks around permanent establishment classification and transfer pricing compliance that require careful structural review and documentation.

In today’s rapidly evolving global business landscape, multinational corporations (MNCs) must navigate complex regulations, enforcement mechanisms, and cultural expectations across jurisdictions. Compliance is not just a legal requirement but a crucial aspect of responsible corporate governance, ensuring operational integrity and long-term success. Businesses must align with diverse legal, regulatory, and ethical standards, adapting to variations in laws and enforcement while managing risks effectively.

The European Commission issued, on 30 April, an official Guidance Note to clarify the customs and tax treatment of pleasure craft — boats, vessels and private aircraft – under EU customs and VAT rules across all 27 Member States.

Supreme Court holds that there are no grounds to declare Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (CGST Act) as unconstitutional, or read down the provisions thereof; Distinguishes judgements delivered in the context of the Delhi Value Added Tax Act, 2004 (Delhi VAT Law) by holding that a purchaser under the Delhi VAT Law and a purchaser under the CGST Act could not be treated at par with each other, in cases where their suppliers fail to pay tax.

India is a key destination for cross-border investments, acquisitions and commercial transactions. In this regard, several foreign law firms partner or collaborate with Indian law firms and financial advisors or act independently to advise Indian clients and multinational groups on transactions, arbitrations and various matters requiring foreign law inputs. Such collaborations have resulted in an increased frequency of foreign law firm personnel visits to India.

In a significant move to deepen foreign participation in India’s sovereign debt market, the Government of India promulgated the Income-tax (Amendment) Ordinance, 2026 on 5 June 20261, introducing a comprehensive tax exemption for eligible foreign investors investing in Government securities. Effective retrospectively from 1 April 2026, the Ordinance exempts specified income arising from Government securities from withholding tax and long-term capital gains tax, thereby addressing one of the principal tax-related barriers to foreign investment in Indian debt markets.

For multinational companies with established GCCs in India, profit repatriation is a natural extension of a successful operating model. When approached strategically, it allows businesses to optimize global cash flows while remaining aligned with India's tax and FEMA regulations.