Bombay Ruling Dampens India Effort to Tax Cross-Border Services

April 16, 2026, 7:45 PM UTC

A recent Indian court order offers new support for multinational companies that say providing cross-border services remotely doesn’t make them liable for India corporate tax.

The Bombay High Court found that technical services provided virtually by a foreign company to its Indian subsidiary weren’t equal to services physically rendered in India, which would have made them taxable there.

The High Court, in an order passed March 27, was ruling on a writ petition filed by Benteler Automotive (China) Investment Ltd., a tax resident of China and part of the Austria-based Benteler Group, which makes automotive parts.

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