International tax and transfer pricing for cross-border business
We help foreign companies doing business in India, and Indian groups operating abroad, get treaty positions, withholding and transfer pricing right from the first transaction.
Overview
Cross-border payments raise the same questions every time. Is the income taxable in India? At what rate, and under which treaty? Does the foreign party have a permanent establishment here? Are the prices between group companies at arm's length?
We answer these questions with written positions you can rely on in an assessment, and we handle the filings that go with them. From 1 April 2026 the Income-tax Act, 2025 governs new transactions, while the 1961 Act continues for earlier years. We work across both.
What we handle
Treaty and withholding analysis
Taxability of royalties, fees for technical services, interest and dividends; treaty eligibility using the Tax Residency Certificate and Form 10F; remittance certification.
Permanent establishment reviews
Fixed place, service, agency and digital presence risks for foreign companies with people, servers or agents in India.
Transfer pricing documentation
Benchmarking, functional analysis, Form 3CEB accountant's report, master file and country-by-country reporting.
TP assessments and APAs
Representation before the Transfer Pricing Officer, the Dispute Resolution Panel and appellate forums; support on safe harbour and advance pricing agreements.
Inbound structuring
Choice of entity, capitalisation, intercompany agreements and profit repatriation for foreign groups setting up in India.
Outbound and individual matters
Overseas investment structures, foreign tax credit, residential status and global income for Indian residents and NRIs.
Typical situations
- A foreign parent charging management fees or royalties to its Indian subsidiary
- An Indian company paying for software, cloud or technical services from abroad
- Employees seconded to or from India and the permanent establishment question
- A group reviewing its intercompany pricing before year-end
Laws and regulations
- Income-tax Act, 2025
- Income-tax Act, 1961 (earlier years)
- Double Taxation Avoidance Agreements
- Multilateral Instrument (MLI)
- Transfer pricing rules
- FEMA, 1999
Frequently asked questions
What does a foreign company need to claim treaty benefits in India?
A Tax Residency Certificate from its home country and Form 10F filed electronically, along with a review of whether the treaty's conditions, including any principal purpose test introduced through the MLI, are met for that payment.
When is a transfer pricing report required?
An accountant's report in Form 3CEB is required where an entity has international transactions, or specified domestic transactions above the threshold, with associated enterprises. For the year ended 31 March 2026 it is due on 31 October 2026.
Does the new Income-tax Act change transfer pricing?
The arm's length framework continues under the Income-tax Act, 2025 with renumbered provisions and forms, and the single 'tax year' replaces the previous year and assessment year. Returns and reports for the year ended 31 March 2026 are still filed under the 1961 Act.
Got a notice, a deadline or a big decision?
Tell us what you are facing and when it is due. A partner will get back to you.