Data from Registrar of Companies, India states that Tesla has registered its office in Bangalore, India as Tesla India Motors and Energy Private Limited. Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein are being made its directors of this unit.
It is likely that Tesla will initiate its working in this unit in the coming days.
Tesla is registered in California, USA, but is invested in other countries through many other and tax-friendly nations.
For India, Tesla has chosen the tax-friendly jurisdiction of the Netherlands to route its India Investments. In the Netherlands, Tesla has its unit in its capital Amsterdam. Tesla Motors Amsterdam is the parent company for Tesla Motors and Energy, India.
Netherlands is a very small country with a population of 1.7 crores but its gross GDP id about 1/3rd of that of India's gross GDP. It also has many treaties with different countries which offer tax benefits related to capital gains and dividend payments.
Tax experts say that the Netherlands has been one of the top choices for US-based companies since it offers favourable tax rates and has strong intellectual property (IP) protection framework.
This is not the only company investing in India through the Netherlands. The tac-friendly jurisdiction if the Netherlands lure many other companies to invest its partner nations to save some part of their tax.
The same thing was with Mauritius and Singapore with India. Bur this treaty with these two countries were amended in April 2019 because many Indian companies also started selling in India through these countries in order to save a lot of tax.
The same may be seen with the Netherlands too in future in order to tackle loss in tax collection.
But trends keep on changing. For example, MG motors which is a UK based company entered in India through China, which is also the home jurisdiction for its parent company SAIC Motors.
Similarly, India investment of KIA motors came from South Korea directly which is also the corporate home of KIA corp.
Countries are kept on changing their tax laws to minimise the unnecessary act of tax-saving by such huge companies.
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