Profitability, to a very great extent, depends on the ability of the investment structure to control the revenue flows in a cost efficient manner and at the same time increase returns in a tax efficient manner.
Essentially, this would depend on the interplay of several variables such as the jurisdiction of the investing entities, Indian tax treaty network, foreign tax credits, protection available to investments, etc.
Certain off-shore locations have favorable tax treaties with India. Investment vehicles backed-up by business justifications from such locations, result in lower or no tax costs.
We assist clients in identifying the tax issues, both domestic and international, impacting the investment structure and on going investment transactions.
We also advise on the ownership structure and the legal structure eligible to avail the tax treaty benefits.