Globalization of Indian enterprises abroad
Issues relating to treaty interpretation such characterization of income and permanent establishment concerns
Transfer pricing issues
Structuring cross-border mergers and acquisitions
Financing transactions
It is often seen that while Foreign Companies have professional consultants guiding on taxation matters, NRIs on the other hand are not found informed of even basic provisions. This leads to unwarranted penalties, and at times losing on fundamental benefits. For instance, under the DTAA treaty between India & UK, and for that matter many other countries, provides for taxing of dependent personnel services only by the other State, and not by the State where the person is a resident. This gives ample room to make to legally plan your income, unless if you are not aware then you would end up paying taxes at both the ends.
To give a simpler example, there are NRIs who even after spending 10 years overseas would not be aware that FDs in India under an NRE account are fully tax-exempt. It is ironical that instead of leveraging on such a brilliant opportunity given by the government, and which is only limited to NRIs (not available to resident Indians irrespective of the slab they fall in), most NRIs are found investing in other instruments with the hope of earning 15%, and on which they will anyway end up paying a 5% tax. Resultant effect is that an NRI would earn marginally extra in spite of taking such a huge risk. Your consultant hence can go a long way in not only helping you plan your taxation, but also for generic guidance in the right direction.
