Two recent court rulings in India help clarify what types of payments to foreign entities can be taxed as fees for technical services—a heavily disputed issue between companies and the country’s tax authorities.
Courts ruled in favor of KPMG Assurance and Consulting Services LLP and US online education firm Coursera Inc., saying payments received by the foreign entities weren’t fees for technical services and not taxable.
The Coursera ruling sets a precedent for entities offering online platforms or databases to Indian customers, said Atul Puri, managing partner of tax advisory SW India.
“This precedent is expected to influence the ...
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