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Eversheds comment: Mixed messages from India on taxation of foreign investment

  • United Kingdom


    Commenting on news that foreign institutional investors may face further tax demands in India, Ben Jones, partner and tax expert at law firm Eversheds, says:

    “There are still very mixed messages coming out of India regarding the taxation of foreign investment. The recent Union Budget of 2015-16 was rightly praised for a number of positive steps taken to address some of the detrimental or uncertain tax rules that have deterred or complicated foreign inward investment into India in recent years. These affirmed the more general statements of intent by the Modi government to remove tax barriers to investing in India. However, the inability to pragmatically resolve legacy tax issues and the consequent prospect for foreign investors of further potentially lengthy and costly disputes with the Indian tax authorities significantly and consistently undermines these positive steps and investor confidence in India as a stable investment environment.”

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