LIVE GST Certification Course by CA Arun Chhajer. Register Now!!

Domestic company Vs Indian Company

Abishek (Student) (1108 Points)

26 May 2011

what is the Difference between indian company and domestic company ?

Reply
Follow
Share

2 Replies

Rajneesh Taparia (STUDENT) (39 Points)
Replied 09 September 2012

Domestic Company u/s 2(22A) AS PER INCOME TAX ACT,1961

Domestic company means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income.

Indian company u/s 2(26) AS PER INCOME TAX ACT,1961

“Indian company” means a company formed and registered under the Companies Act, 1956 (1 of 1956), and includes-

(i) a company formed and registered under any law relating to companies formerly in force in any part of India (other than the State of Jammu and Kashmir and the Union territories specified in sub-clause (iii) of this clause);

(ia)	a corporation established by or under a Central, State or Provincial Act;
(ib)	any institution, association or body which is declared by the Board to be a company under clause (17) ******* ;
(ii)	in the case of the State of Jammu and Kashmir, a company formed and registered under any law for the time being in force in that State;
(iii)	in the case of any of the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry, a company formed and registered under any law for the time being in force in that Union territory.

Provided that the registered or, as the case may be, principal office of the company, corporation, institution, association or body in all cases is in India;

Apurba Pandit (Owner) (0 Points)
Replied 23 November 2023

"Domestic Company" refers to any company, whether it's Indian or from another country, that has made the prescribed arrangements to declare and pay dividends, including dividends on preference shares, within India. This definition is often associated with tax regulations, and it implies that the company, regardless of its origin, has complied with the specified procedures for declaring and distributing dividends within the Indian tax jurisdiction.

An "Indian company" specifically refers to a company that is incorporated under the laws of India and operates within the geographical boundaries of India. It is a subset of the broader category of domestic companies, specifically indicating that the company is based in India.