Cross-Border Mergers and Acquisitions: Addressing the Taxation Issues from an Indian Perspective

Abstract:     
The boom in cross border mergers and acquisitions (M&A) has given new urgency to understanding and managing the complex tax consequences of international expansion. There are very little globally accepted norms regarding tax law legislations. With India occupying an increasingly important place on the world stage, there is a need for India to mature in relation to administration of tax laws. This provides with an adequate research area. This paper explores the available tax laws that govern the cross border deals involving India. The debate over a couple of taxation issues has led to a few amendments by virtue of the Finance Act, 2008. This would have a major impact on deals with a country with which India do not have a double taxation avoidance agreement (DTAA). The major legal battles including the Vodafone dispute which would decide the fate of a large chunk of Foreign Direct Investments into India is much awaited and the challenge lies in balancing the interest of the investors and the revenue authorities.

Number of Pages in PDF File: 15

Keywords: M&A, tax, India

JEL Classification: G24, G31, H25, G15

Accepted Paper Series