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Clarity on BPO taxation laws sought
August, 29th 2006
The Associated Chambers of Commerce and Industry has urged the Finance Ministry to clarify provisions of taxation on profits earned outside India by the Indian BPO Industry. According to the chamber any ambiguity on BPO taxation laws, particularly in the case of tax on profits earned outside India at times when Indian BPO units are providing services to their overseas counterpart on a temporary basis, would create confusion. Therefore, the chamber has sought clarification in this regard, suggesting the Central Board of Direct Taxes to bring out a specific circular.
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