MNCs in India may soon face higher taxes, says report

Multi-national companies (MNCs) based in India may soon face a higher tax burden, reported The Times of India.

The rules for attributing profits to MNCs having a permanent establishment in India are set to change if the draft report issued by a Central Board of Direct Taxes (CBDT) appointed committee is adopted, the report said.

According to the report, experts said that this would pave the way for the MNCs, who often attribute a higher share of their profits to their operations in the country, to pay a higher tax.

Any foreign enterprise having a permanent establishment in the country will now be taxable under Indian rules. However, tax can only be imposed on the profits earned by the firm through its operations in India, said the report.