INTRODUCTION
This edition brings you a significant update on Direct Tax,
designed to keep you informed and ahead in an evolving regulatory
landscape.
We trust you will find the insights useful, relevant, and
timely.
NITI AAYOG WORKING PAPER ON "ENHANCING CERTAINTY,
TRANSPARENCY AND UNIFORMITY IN PERMANENT ESTABLISHMENT AND PROFIT
ATTRIBUTION FOR FOREIGN INVESTORS IN INDIA"
A. Niti Aayog has come up with a working paper on taxation of
Permanent Establishment (PE) in India. The paper recognizes the
importance of foreign direct investment (FDI) and foreign portfolio
investment (FPI) in India's Economic Growth. It further
acknowledges the role of stable, predictable, and transparent tax
regime in instilling confidence of such foreign investors in India.
It highlights that an unexpected PE trigger could lead to
substantial and unforeseen tax liabilities on income arising out of
Indian operations, which deter investments in India. To tackle this
issue of
