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Taxes Applicable to Foreign company

mallela.ravikiran (learner) (136 Points)

11 June 2010

Dear Seniors,

i need help from your end ..

can you please let me know, what are the applicable taxes to a foreing company if it provides services in india, like service tax and income income tax etc.. please send notifications also if any.

your are advice in this regard is highly appreciated.

thanks in advance.

Regards,

Ravi.

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RONIL (ARTICLESHIP. PCC may 10) (34 Points)
Replied 11 June 2010

tax rate i.e. income tax is flat 40 %

For dividends 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States
For interest gains 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States
For royalties 30% in case of non-treaty foreign companies and 20% for companies under the treaty based in United States
For technology based services in case of non-treaty foreign companies and 20% for companies under the treaty based in United States
For other kinds of income and gains 55% in case of non-treaty foreign companies and 55% for companies under the treaty based in United States
Attention must be given on levying inter corporate rates in case the holding is minimum
Attention must be given on the fact that the sanctions of the tax authorities on tax withholding
Attention must be given on the several of the tax treaties India signed with the other countries and also the various encouraging tax rates