Business Connection in India – Definition
Expanded
India has been a front-runner in implementing the initiatives of
the Organisation for Economic Cooperation and Development (OECD)
and the G20 on the Base Erosion and Profit Shifting (BEPS) Action
Plans. The final report on the BEPS Action Plan had recommended
various amendments to domestic laws and tax treaty provisions to
deal with international tax issues faced globally due to changing
business environment.
Some of the proposals of the BEPS Action Plan, like equalization
levy, Country-by-Country-Reporting, limiting interest deduction,
etc. were already implemented by India in its domestic tax
laws.
India has taken one more step in implementing the BEPS
suggestion into Budget 2018 and has amended the definition of
'business connection' under the local laws. The expanded
definition of business connection under the Indian domestic tax
laws now provides for a more stringent definition of Dependent
Agent Permanent
