India had introduced "place of effective management" rules last year to tax companies where key management and commercial decisions are made in India as local entities.
According to the balance sheet of the National Spot Exchange Ltd (NSEL), 'business support charges' paid to FTIL more than doubled to Rs 33.8 crore in 2012-13 from Rs. 15.56 crore in 2011-12. NSEL pays business support charges to FTIL for using its trading platform.
India will not retroactively tax portfolio investments and will shift the burden of proving evasion on tax to authorities, two government sources said on Thursday, providing a measure of comfort to foreign investors worried about proposed new rules.
Macquarie's Asia hedge fund has exited its short positions in Indian single stock futures in response to a controversial set of proposed tax rules that could lower investment returns.
Chinese authorities found three companies linked to Google Inc broke tax rules and are investigating possible tax avoidance, a Chinese state-run newspaper said on Thursday, raising the risk of fresh pressure on the Internet search giant.