India: Transfer Pricing

Aurtus provides comprehensive tax and advisory services spanning direct tax, indirect tax, and international tax matters. Their expertise includes transaction structuring, M&A assistance, IPO advisory, GST compliance, transfer pricing, and specialized services for family offices and GIFT IFSC setups. The firm offers end-to-end solutions for corporate tax planning, dispute resolution, and regulatory compliance across domestic and cross-border transactions.

The Delhi Tribunal's recent ruling in Paul Wurth Italia has reshaped the application of the force of attraction rule under tax treaties, emphasizing that a permanent establishment's mere existence cannot justify taxation of all source-country profits. This decision marks a critical shift toward requiring demonstrable factual and functional nexus between the PE and disputed income, signaling a more restrained interpretation of this contested principle in international taxation.

The intricacies of cross-border transactions could overwhelm, as the process has to be planned from the perspective of transfer pricing and double taxation. Imagine a business group operating with two associated group companies-one each operating Overseas and in India. While the overseas firm searches prospects, finalizes clients, and secures orders, the Indian arm offers software, technical, and operational support. Despite running separate operations, both companies are owned by the same promoters who own and run both businesses. From a business standpoint, this setup works quite well.

Cross-border Employee Stock Option Plans (ESOPs) have become an increasingly important component of global compensation strategies. As multinational corporations, Global Capability Centres (GCCs), private equity-backed businesses and internationally expanding startups continue to grow their operations in India, employee participation in foreign equity incentive plans has become commonplace.

Multinational enterprises across technology, financial services, manufacturing, and healthcare sectors continue to expand their GCC presence in India, supported by favourable policy initiatives. The Union Budget 2025–26 launched a national framework to expand GCCs into Tier-II cities, driving broader geographic reach and deeper capability integration.

インドの所得税制度は、過去60年以上の歴史のなかで最も広範かつ抜本的な構造改革を経験しました。2025年所得税法（IT Act, 2025）は、従来の1961年所得税法（IT Act, 1961）に代わるものであり、2026年4月1日に施行されました。さらに、本法には直接税中央委員会（CBDT）によって2026年3月20日に告示された2026年所得税Š

The Survey predicted that there is a 10-20% chance of a systemic shock - that may cause a repeat of the 2008 financial crisis in 2026. Financial and technological geopolitical stresses will promote one another.

Units in an International Financial Services Centre (IFSC) and Offshore Banking Units (OBUs)...

No changes have been proposed in the Finance Bill, 2026 (Bill) on the personal and corporate income tax rates.