Nasscom urges Centre to intervene in double-taxation issue with Australia

Australian court had ruled that payments received by Indian IT firm Tech Mahindra should be treated as 'royalty' and taxed

IT industry body Nasscom has sought the intervention of Indian government to resolve the concerns about double taxation in Australia. The representatives of the trade body are meeting Indian government officials to appraise them about the issue following the verdict of an Australian court, which said that payments received by Indian IT firm Tech Mahindra should be treated as ‘royalty’ and taxed.

This translates into a small percentage of tax on Tech Mahindra's offshore income derived from Australian clients while the company is already paying taxes on income from Australian units. Most Indian IT services companies have a sizable client