India's GCCs too big to bill lightly: Backend hubs face tax claims

The big question: Are these companies paying their fair share of taxes in India? That question has triggered a series of tax disputes between foreign firms and Indian authorities

India has become a go-to destination for many foreign companies looking to set up back offices or tech hubs — formally known as global capability centres (GCCs). These centres handle information technology (IT) services, finance, customer support, software development, and more, primarily for parent companies based in the US, Europe, or elsewhere.

 

Recently, at an event hosted by the Confederation of Indian Industry, Finance Minister Nirmala Sitharaman said: “There are about 1,800 GCCs in India, employing nearly 2.16 million professionals. The compound annual growth rate has been 11 per cent over the past five years. And this number of 2.16