The effect of hosting in India on low tax structures
Outsourcing certain business process to India can realise considerable competitive advantage. However tax rules in India are different to Europe creating the potential for unexpected tax footprints. For example the location of computer servers for online business in India can create permanent establishment and therefore a taxation issue. This short paper describes the some of the basic tax principles of running a business in India and the potential risks associated with locating internet business servers in India.
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