<h1>Bombay High Court: Foreign Law Firms Taxed Only Where Services Rendered, Not in India, per Section 9(1)(vii)(c).</h1> A division bench of the Bombay High Court ruled that foreign law firms providing services to multinational corporations with operations in India will only be taxed in the countries where they render legal advice, not in India. The court emphasized that for services to be taxable in India, they must be both rendered and utilized within the country, as per Section 9(1)(vii)(c) of the Income Tax Act. This decision aligns with the internationally accepted principle of territorial nexus, stating that income deemed to accrue in India must meet specific conditions, focusing on the location of service performance rather than utilization.