Applicability of tp provision for non resident parent
This query is : Resolved
11 November 2014
Issue is related to Applicability of Transfer pricing provision to Non Resident Parent Company – not having PE in India.
*Parent Company(Non Resident) receiving Royalty Income from its Indian Subsidiary company after withholding tax in India @ 26.265% as not having PAN in India.
* Indian Subsidiary : Remitting the TDS to Indian government and showing the same transaction with associates in Transfer pricing Repot. – SO NO ISSUE REGARDING COMPLIANT POINT FOR VF India – Subsidiary Company.
* Non Resident Parent Company : Receiving only Royalty income in India from its subsidiary company(VF India) after withholding tax @ 26.265%(higher rate as not having PAN In India) , whether is it MANDATORY for Parent company(nonresident) to get PAN in India and Get Transfer Pricing(TP) Report from Auditor for Transaction with Its Indian Subsidiary Company and fulfil all provision related to TP? If it is mandatory, what is the penalty for non fulfilment if the Transfer Pricing provision for Nonresident Parent Company?
Issue is related to Applicability of Transfer pricing provision to Non Resident Parent Company – not having PE in India.
*Parent Company(Non Resident) receiving Royalty Income from its Indian Subsidiary company after withholding tax in India @ 26.265% as not having PAN in India.
* Indian Subsidiary : Remitting the TDS to Indian government and showing the same transaction with associates in Transfer pricing Repot. – SO NO ISSUE REGARDING COMPLIANT POINT FOR VF India – Subsidiary Company.
* Non Resident Parent Company : Receiving only Royalty income in India from its subsidiary company(VF India) after withholding tax @ 26.265%(higher rate as not having PAN In India) , whether is it MANDATORY for Parent company(nonresident) to get PAN in India and Get Transfer Pricing(TP) Report from Auditor for Transaction with Its Indian Subsidiary Company and fulfil all provision related to TP? If it is mandatory, what is the penalty for non fulfilment if the Transfer Pricing provision for Nonresident Parent Company?
11 November 2014
Since there is no PE (Permanent Establishment) in India of the parent company and the TDS has been appropriately done, NO NEED for the parent company to do anything.
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