India’s budget 2010 keeps Corporate Tax rates unchanged for foreign companies but an increase in the Minimum Alternate Tax (MAT) rate and a controversial retroactive tax on non-resident services can affect multinationals, Nair & Co, a leading global integrated solutions provider helping companies expand internationally, said on Thursday.

Here are the key highlights.

India Increases Minimum Alternate Tax (MAT) RatesIndia increased the Minimum Alternate Tax (MAT) rate from 15% to 18% of book profits. Companies need to assess the impact of the minimum alternative tax on their taxable income.Read More

Retroactive Taxation for Non-resident Services Outside IndiaIn a highly debated move that could impact foreign companies with turnkey contracts in India, the government clarified the rules governing non-resident income in the nature of royalties, interest and fees for technical services.Read More

Direct Tax Code/GST Implementation on TrackThe Indian government reaffirmed the April 1, 2011 deadline for the Direct Tax Code and the Goods and Services Tax (GST) regime to come into effect. The GST regime impacts all companies that trade in India.Read More

Incentives for Research and DevelopmentIn bid to further incentivize investments in in-house research, the Indian government proposed to increase the weighted deduction on expenditure incurred on scientific research.Read More

Withholding Tax ProvisionsThe threshold limit (limit up to which no tax is required to be withheld) for withholding tax on payment to domestic assesses has been marginally increased.Read More

Nair & Co. provides an integrated solution in the HR, finance, tax, compliance and legal arenas making a company’s move overseas less risky, stress free and more strategic. It currently has 700+ client operations in over 40 countries with offices in U.K., India, China, U.S., Japan and Singapore. In 2009, Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). www.nair-co.com.