software startups: SaaS startups may come under tax lens for adopting flipped structure
Synopsis Revenue authorities feel India is getting shortchanged as flipping results in significant value being captured outside India without corresponding taxes being paid here. ETtech Software product startups that have taken their intellectual property (IP) abroad by adopting the so-called flipped-structure method could come under the tax department’s scanner. Revenue authorities feel that India is getting shortchanged because of this method adopted by some companies, not just on the potential asset value created by the IP, but also on tax collection, two people aware of the matter said....
Source: indiatimes.com