Monthly Archives: June 2014

  • Article – (FDI) in LLP in India – Cross Border Tax Issues- Published by International Tax Review – A Globally published Journal

    June 4 2014

    Limited Liability Partnership (LLP) is a widely practiced form of doing business globally. And, once Foreign Direct Investment (FDI) in LLP was allowed by Government of India many MNCs have started setting up LLP in India. This surge by MNCs can well be on the fact that at present there is no repatriation tax [in case of Companies Dividend Distribution Tax is levied @ 17% (as per the Extant IT Act) on the repatriable profit- off course there are means by which double taxation is avoidable in foreign country on such repatriated profits] on profits repatriated by an LLP in India.

    However, there can be number of cross border taxation issues, particularly under Double Taxation Avoidance Agreements (DTAA)/ Tax Treaties, which requires utmost attention with respect to the taxability of such LLPs & their foreign partners.

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