The SKP Advantage
With India’s increasing attractiveness as an investment destination, FDI has been on the rise with a growing number of international businesses looking at establishing operations here. However, the risks associated with venturing into a new territory with a complex accounting, tax and regulatory environment are many. This guide aims to give you an overview of the ever-changing Indian environment.
India has the third largest armed forces in the world and a defence budget of about USD 40 billion, of which a substantial amount is spent on capital acquisition. India is estimated to procure at least USD 50 billion worth of equipment, parts and services over the next 10 years, making it one of the largest importers of conventional defence items globally. This presents a significant opportunity for foreign suppliers. In this update, we look at the regulatory framework for investing in the defence sector in India.
The ITAT held that the activities which are related to construction or installation for certain projects are specifically covered under Article 5(3) of the India Singapore Double Taxation Avoidance Agreement (DTAA). It has also held that the threshold of 183 days must be considered on a standalone basis for each project and not on an aggregate basis of all the projects taken together.