Vivad se Vishwas: Rupee fall lures MNCs to opt for tax settlement scheme

I-T dept receives 24 enquiries from Indian subsidiaries, permanent establishments of foreign firms

Some subsidiaries of foreign firms have approached the Income-Tax Department to ascertain the tax outgo if they avail of the scheme on the basis of the latest exchange rate, said tax officials in the know.

According to the sources, MNCs, especially those that have permanent establishments (PE) or even subsidiaries, wish to encash the differences in the currency rates which may help them (the parent firm) in saving 15-20 per cent of the tax outgo in effective terms, stuck in long-pending tax litigation. Foreign firms are learnt to have nudged their Indian arms to participate in the scheme and take advantage