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India Opens Its Doors to Foreign Consultancy Firms

BY Stanley Kolodziejczak
March 31, 2009

India looms large on the horizon as the next territory for increased expansion by law firms. A recent court ruling holding that India may tax a foreign law firm only for work actually performed in India, coupled with the enactment of a law permitting businesses to operate as limited liability partnerships, pave the way for these firms to enter the Indian market.

The Clifford Chance Case

In a recent case involving the issue of taxation by India of fees earned in connection with legal services provided by a London-based law firm, the Bombay High Court has ruled that taxable income should be measured by the number of billed hours of work actually performed in India.

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