Mumbai bench of the Income-Tax Appellate Tribunal in favour of the US multinational sets a precedent for the taxation of the franchise model good news for franchises of foreign brands that already operate across India. Foreign multinationals can expand their brand presence in India through a franchise agreement without suffering a higher tax burden imposed on permanent establishments (PE) following the Domino’s Pizza case
- Suraj Nangia, Partner shares his views on aforementioned story for International Tax Review magazine(Singapore).
Attached is link to the article – http://www.internationaltaxreview.com/Article/3821005/Corporate-Tax/Dominos-Pizza-case-encouraging-for-MNEs-expanding-into-India.html