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Corporate Tax  

The current rate of income tax applicable to Indian companies is 30% plus a surcharge (effectively, 33.66%).  The current rate of income tax applicable to branch offices or Permanent Establishments of foreign companies in India is 40% plus a surcharge (effectively 41.82%). These rates change annually with effect from April 1.

India has executed double taxation avoidance agreements with many countries, including the UK, the US, Cyprus, Mauritius, Singapore, etc.  Favorable tax treatment is available under these treaties.  It is fairly common for international companies to route their investment into India through Mauritius in order to avail of reduced withholding taxes on payments of royalty, technical service fees, interest on loans, capital gains, etc

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