Introduction: For Japanese companies operating in India, TDS (Tax Deducted at Source) is not just a routine compliance task—it’s a legal obligation with serious consequences. Delayed or incorrect TDS deduction can attract interest (Sec 201(1A)), penalties, and expense disallowances (Sec 40(a)(ia)), affecting both profitability and audit readiness, impacting profitability and audit ratings. Many Japanese firms...

A Global Capability Center (GCC) is no longer just a cost-saving offshore unit—it’s a high-value, strategic extension of the parent company. For Japanese corporations aiming to enhance global competitiveness, GCCs have emerged as a critical lever to centralize R&D, IT, finance, procurement, and digital transformation functions. India is increasingly the top choice for these centers,...

Introduction As Japanese foreign direct investment (FDI) in India steadily rises—particularly in sectors like manufacturing, automotive, and trading—so does the complexity of compliance under Indian regulations. From multi-tier GST filings to stringent TDS rules and evolving MCA requirements, the workload is heavy and time-bound. Internal finance teams often struggle with legal nuances, language barriers, and...

Introduction: India’s Growing Investment Appeal for Japanese Enterprises As Asia’s fastest-growing major economy, India continues to attract global investment, particularly from Japan, which shares a long-standing diplomatic and trade partnership with the country. With India’s emphasis on ease of doing business, the expansion of infrastructure under initiatives like “Make in India,” and the availability of...

Introduction: Cross-border M&A between Japan and India is on the rise. Japan’s outbound investments into India have surged, backed by government-level cooperation, strong FDI flows, and India’s status as a global hub for manufacturing, logistics, and digital innovation. As Japanese conglomerates and SMEs explore acquisitions to gain faster access to Indian markets, understanding the M&A...

Introduction: As global supply chains pivot and diversification becomes a strategic imperative, Japan’s outbound investment trend is shifting from China-centric models to emerging markets like India. Backed by strong bilateral ties, favorable FDI policies, and geopolitical alignment, India offers a unique window for Japanese businesses to tap into a fast-growing economy. With thriving sectors like...

Introduction: Global Capability Centers (GCCs) are transforming the way businesses operate across the world. These centers, also known as Global Delivery Centers (GDCs) or Shared Services Centers (SSCs), act as dedicated hubs for handling a variety of back-office functions such as IT services, finance, human resources (HR), and customer support. GCCs provide businesses with the...

Introduction India’s regulatory landscape in 2025 demands sharper compliance focus from foreign businesses. The Central Board of Direct Taxes (CBDT) has intensified audits on cross-border transactions, especially on royalty and service fee remittances under Section 195. Foreign firms pursuing company registration in India must be aware that delays in filing TDS returns attract a daily...

Introduction India and Japan’s collaboration under the Supply Chain Resilience Initiative (SCRI) is no longer just policy—it’s shaping real corporate expansion through Japanese support in India. In 2021, both governments signed an MoU to strengthen bilateral trade and reduce over-reliance on China. By 2025, this framework will have evolved into actionable incentives, especially in critical...

India’s corporate tax landscape in 2024 is facing a dramatic surge in litigation. With a rise in scrutiny from the Income Tax Department, multinational corporations (MNCs) operating in India are increasingly exposed to audits, transfer pricing disputes, TDS inquiries, and reassessment notices. The growing number of litigation cases signals that tax compliance is no longer...