Additional tax likely for MNCs importing raw materials

02-Jun-2021
Additional tax likely for MNCs importing raw materials

Multinationals that import equipment or raw materials, or lease certain types of manufacturing goods, may have to pay additional taxes as government’s move to tax overseas companies’ income from digital transactions in the country has ended up covering offline transactions too.

The significant economic presence (SEP) provisions announced in May primarily intended to target digital MNCs and startups that operate in the country without a permanent establishment (PE). Some traditional companies that do not have a PE in India could also find themselves embroiled in the new tax framework, tax experts said. These firms may have to pay up to 42% of their income in taxes in the country, up from nil now.

The intention of SEP provisions was probably to only cover digital transactions within the tax net, experts said. However, the wordings of the regulation appear to trigger unintended consequences for MNCs and even some Indian entities, they said.

Source: economictimes.indiatimes.com

Seair is proud to have a loyal customer base from big brands.

We have successfully served many reputable clients for Import-Export Data Information Services. Here are some of our clients:

View All

Get a free Import-Export data demonstrative report on desired products.

We don’t offer any assistance over buying or selling any products.

Thank You

Big thanks to showing your interest in SEAIR Exim Solutions. We’ve currently received your request for data information. We will return on the same query in a short span of time.