The issue of taxing Indian back offices of foreign companies refuses to go away with the government planning to ask the Supreme Court to revisit its July decision that ruled that US investment bank Morgan Stanley would not have to pay tax in India on global income earned on account of the firm’s captive back-office unit in the country.
The ruling will have a bearing on the around 110 captive back offices that exist in India that serve parent companies, including Standard Chartered Bank, Fidelity Investments and ABN Amro.
“We are filing a review petition (in the Supreme Court). We had presented quite a bit of evidence which is not there in the judgement,” said an official of the income-tax department, who did not wish to be identified.
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