Chartered Accountants Blogs

  Taxation of Cross-Border Transactions in India Under the Income Tax Act, 1961 In today’s interconnected global economy, international transactions have become a fundamental aspect of business operations. Companies engage in cross-border trade, foreign collaborations, and overseas investments, necessitating a clear understanding of  taxation laws . Navigating the complexities of Indian tax regulations is crucial for compliance and strategic planning.  Understanding International Transactions International transactions encompass a variety of  business  activities, including: Import and export of goods and services Foreign collaborations for projects Investments in overseas entities Cross-border financial arrangements As per Section 92B of the Income Tax Act, 1961, international transactions occur between two or more associated enterprises across international borders, making tax compliance a key consideration. Key Taxation Laws and Provisions The  taxation ...