Desi branches of foreign companies to take deeper roots
Business new tamfitronics It is good news for foreign companies operating in India as branches or project offices. Corporate tax is to be cut from 40% to 35%.'Foreign companies' denotes branches of foreign companies - such as branches of foreign banks who are not permitted to operate as a subsidiary. It also includes project offices such as an infrastructure project office set up by a foreign company for a particular project.It does not include Indian subsidiaries of foreign companies.At times, foreign companies test the waters in India before setting up a full-fledged subsidiary. "The rate reduction signals a strong play for foreign investment in India," Jiger Saiya, partner and tax leader at MSKA & Associates, said.Withdrawal of the 2% equalisation levy provides relief to digital companies as the consideration received or...