The Supreme Court of India has requested Clifford Chance to provide details of its India-billings of more than a decade ago in its long-running dispute against the Deputy Commissioner of Income Tax (DCIT). The case is important to determine international firms' income tax liabilities while billing for work in India.

The Supreme Court case follows CC’s win in the Bombay High Court. In January this year Clifford Chance won a favorable order, which ruled that foreign firms should only be taxed on work performed in India. 

The firm was represented in the Bombay HC by senior counsel Harish Salve. The firm had appealed against the income tax authority in the Bombay High Court claiming that only the minority of its fees in those projects transactions - $871,000 - was billed within India.  
 
It argued that the majority and the rest being billed by lawyers outside of India acting predominantly for non-Indian clients and should be taxable in the UK under the UK-India Double Taxation Avoidance Agreement (DTAA). 
 
The Bombay High Court accepted Clifford Chance's arguments and decided a non-resident could only be taxed on income for services, if that service was rendered within India and was part of a business or profession carried on by such person in India. 
 
The current Supreme Court case concerns the appeal of the DCIT, represented by attorney general G E Vahanvati, which now requires Clifford Chance to provide precise details of the fees billed in India.