New Delhi, Oct 3 (PTI) The government think tank Niti Aayog on Friday suggested the introduction of a presumptive taxation scheme for foreign companies to provide certainty and simplicity.

The Aayog, in a working paper, said the optional presumptive taxation scheme would help in resolving disputes concerning PE (permanent establishment), simplifying compliance and protecting revenue.

“The proposed presumptive taxation scheme is a proactive and pragmatic solution to a long-standing problem.

“It balances India’s sovereign right to tax with the need to provide certainty and simplicity to foreign investors," the working paper said.

The paper noted that despite India’s inherent appeal and remarkable FDI growth, structural impediments such as ambiguous PE regulations introduce tax uncertaint

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