It has been reported that the Indian tax authorities are investigating the use of low-tax jurisdictions by television and film production companies in order to avoid taxes in India.
The use of such jurisdictions came to light when a Cyprus-based company (i.e. TIFC Cyprus) applied for permission to pay a Mauritius-based company (i.e. UTV Mauritius) for the worldwide rights to an Indian movie, without the need to withhold tax in India because the transaction was between compa…