Jul 20, 2010
Will Court Ruling Bring Tax Woes for International Firms in India?
Tax troubles are rearing their heads again for international law firms in India, following a Mumbai tax tribunal’s ruling that British legal giant Linklaters owes taxes on fees earned on work that was referred from India but was not necessarily performed in the country. Indian tax authorities claim Linklaters owes taxes at rates of up to 40 percent on some $5.06 million. The ruling raises the prospect that international law firms and other professional service providers will face higher costs in servicing Indian clients.