Applicability of tp provision for non resident parent

This query is : Resolved

brinda (Querist)
Follow

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?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

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.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rajat Khandelwal

efiletax

asmita gupta

Shraddha Pangam

Choudhary

Subscribe Now

Applicability of tp provision for non resident parent

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA

Applicabil​ity of tp provision for non resident parent

Similar Resolved Queries

Quick Links

Browse by Category

Applicability of tp provision for non resident parent