India-based GCCs emerge as global hubs for complex tax operations: Deloitte

New Delhi [India], June 14 (ANI): Global companies are now using their India-based Global Capability Centres (GCCs) to run complex tax operations, covering corporate tax, indirect tax, transfer pricing, and litigation, according to a whitepaper report released by Deloitte, a multinational professional services firm.

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The whitepaper said that GCCs in India have emerged as strategic hubs for tax-related functions, offering a unique blend of expertise, technology and cost efficiency.

"GCCs have become an integral part of the global tax ecosystem, providing organisations with a competitive edge in managing their tax functions," Deloitte's white paper, titled Transforming Global Tax Functions: The GCC Advantage, added.

The Indian GCC landscape has witnessed significant growth, with many organisations establishing their tax Centres of Excellence (CoEs) in the country, according to the paper, which was prepared by Manisha Gupta, Partner, Deloitte India.

Global Capability Centres, or GCCs, also known as captive centres or in-house centres, are strategically located facilities established by multinational corporations (MNCs) to provide specialised functions and services to their parent organisations.

The report adds that about 76 per cent of participants indicated they already undertake global tax processes from India.

"As more organisations pursue centralising tax functions, many have already established a tax CoE. The focus was on key tenets and building blocks to establish and expand a successful tax CoE," the report added.

India has emerged as a major destination for the global players.

As per the official data, India is home to over 1,700 GCCs, employing 1.9 million professionals and generating USD 64.6 billion in revenue as of 2024. Key GCC hubs are located in Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and the National Capital Region (NCR).

The sector is projected to expand to USD 105 billion by 2030, with around 2,400 GCCs employing over 2.8 million people, solidifying India's role as a global hub for enterprise operations and innovation.

With 40 per cent of digital transformation projects in GCCs, India is now a center for high-value technology-driven solutions. GCCs emerging from different geographies, viz., Germany, the UK, Japan, and Nordic countries, is another significant development observed in recent years.

A significant shift towards diversification of operations, with evolution towards higher value services, is seen as GCCs in India transition from data processing to knowledge processing over the years. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)