Nestle Among Firms Facing Higher Tax In India After Court Loss

Several multinationals doing business in India are on the hook for significant back taxes, interest, and potential penalty payments after the Supreme Court overturned a lower court’s interpretation of tax treaty implementation.

The decade-old case impacts taxation at source of dividends, fees for technical services and the like, remitted by Indian subsidiaries of multinationals. Four companies—Nestle SA, Steria (India) Ltd., Concentrix Services Netherlands B.V. and Optum Global Solutions International BV—won favorable rulings on the issue in the Delhi High Court, which were challenged by the tax department, and now overturned by the Supreme Court.

The apex court order issued Thursday ...