SC ruling: foreign firms can claim tax benefits in India
Big news from the Supreme Court: foreign companies can now claim tax deductions and carry forward losses in India, even if they don't have an active contract or office here.
As long as there's some business connection—like bidding for projects or handling admin work—they're still considered "in business."
The judges made it clear that a pause between projects doesn't mean you're out of the game.
While it's easier to claim tax benefits, foreign firms may
This move helps global companies working in India on a project basis, like the French drilling firm Pride Foramer SA, which became the subject of the case after its contract with ONGC ended.
But there's a catch: while it's easier to claim tax benefits, foreign firms may face increased scrutiny and potential tax liability during downtime.
Experts say it's now extra important to keep detailed records to show you're still active in India—even if you're between contracts.