India's tax year in review: a fireside chat with Dhruva Advisors

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

India's tax year in review: a fireside chat with Dhruva Advisors

Sponsored by

logo.png
Article head shot image - Dhruva podcast.png

Dhruva tax experts Mehul Bheda, Kulraj Ashpnani and Ashish Agrawal review a whirlwind year for tax in India, in an exclusive podcast with ITR

It was a transformative year for tax in India, as 2023 saw a host of highly anticipated Supreme Court decisions and government policies impact the way both domestic and multinational companies do business.

To help navigate this dynamic period, ITR editor Tom Baker spoke with three experts from Dhruva Advisors, partners Mehul Bheda and Kulraj Ashpnani and associate partner Ashish Agrawal, in an in-depth and colourful fireside chat.

First on the agenda was analysing the fallout from a 2022 Supreme Court ruling related to the taxation of secondees from multinational groups to Indian entities. The speakers highlighted that multinationals need to be careful in the underlying documentation of expat secondment arrangements.

Next, Agrawal reviewed a Supreme Court ruling from October 2023 regarding most favoured nation (MFN) clauses with India. The ruling stated that specific notifications by the Indian government was mandatory to invoke the MFN clause in India’s tax treaties.

Agrawal warned of the implications: "[The Supreme Court ruling on most favoured nation clauses] could have severe implications for Indian companies and overseas taxpayers especially for past transactions, and the government needs to deal with it in a more pragmatic way."

Bheda then chimed in with a summary of recent case law regarding the buyback of company shares and the ensuing dividend tax considerations, before discussing changes to India’s ‘angel tax’ rules.

"The 'angel tax' is very peculiar. If you issue shares at a premium, they have to conform with 'fair valuation rules'”, Bheda argued.

“If the share premium is in excess of fair value, the excess will be treated as income and taxed accordingly. It's a very punitive provision. There is nothing 'angel' about it!"

The session concluded with all participants attempting some crystal ball-gazing, and predicting what new tax controversies will arise in 2024, a crucial election year in India.

About Dhruva

Dhruva is dedicated to setting industry standards through exceptional service delivery. With strategic prowess, Dhruva has successfully managed numerous substantial and pivotal tax disputes and related matters within India.

Dhruva’s esteemed team includes 15 partners, five senior advisors, 11 associate partners, 30 principals, and over 300 exceptionally talented professionals.

more across site & shared bottom lb ros

More from across our site

The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
The tax agency has increased compliance yield from wealthy individuals but cannot identify how much tax is paid by UK billionaires, the committee also claimed
Saffery cautioned that documentation requirements in new government proposals must be limited if medium-sized companies are not exempted from TP
The global minimum tax deal is not viable without US participation, Friedrich Merz has argued
Section 899 of the ‘one big beautiful’ bill would have spelled disaster for many international investors into the US, but following its shelving, attention turns to the fate of the OECD’s pillars
DLA Piper’s co-head of tax for the US and Latin America tells ITR about her fervent belief in equal access to the law, loving yoga, and paternal inspirations
Tax expert Craig Hillier agrees with the comparison of pillar two to using a sledgehammer to crack a nut
The amount is reported to be up 57% from the £5.6bn that the UK tax agency believes was underpaid in the previous year
Gift this article