14 September 2015
I am requesting your guidance and knowledge through this mail with regard to getting suggestions and referring relevant ACT to be referred, for doing the job of one of my clients. This client is a 100% subsidiary of a foreign company, which is paying interest and royalty to its US parent company for use of its trademark and finance provided to run daily operations. the US parent company is not having a PAN. The TDS is being deducted and paid as per DTAA rates or at 20%. Now the Indian counterpart wants to a make PAN card of its parent company and file the relevant financials in INDIA. I want to confirm is this possible and if yes, what is the procedure.Can the TDS paid previously through debenture interest and royalty be refunded to INDIAN subsidiary. I also forgot to mention that Indian subsidiary is engaged in purchase of items to be sold exclusively in India from US parent company, hence how will this affect my client? A transfer pricing study is conducted and filed for Indian counterpart, do we need to do the same for the sales again
14 September 2015
The TDS deducted on payments to parent company can't be refunded, only the parent company can claim relief in US for tax deducted. Study has to be conducted yearly and filed.
CAclubindia
