How foreign IT companies reduce tax liability in India

The operations of Indian and foreign IT firms are now structured similarly, they fight for the same business, there is parity in their contract pricing and employee salaries, they follow the same tax rules. So, then, why are foreign IT firms reporting profitability numbers that are a fraction of their Indian peers? It's a question the IT department is beginning to evidently ask foreign IT firms with greater frequency -- and extract more tax revenues from them.

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