Company structure

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deepa (Querist)
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29 March 2012 Dear friends...

One of my is working for a startup in US. its a proprietorship concern there. Some of the hardware part of it is made in India, He is acting as a free lancer - on principal to principal basis. He is also looking after some of the products which are manufactured in India. Though he is not connected in any other sense, but due to some reasons he is getting some money in his account to pay custom charges.

I feel that, its a line of connection between the two.

Can anyone please suggest me, whether my thinking is right, and if yes, how to overcome that connection.

Also the foreign entity wants to start a company in India but after an year. In the mean time what should be the relationship between the two.
awaiting your responses........

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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29 March 2012 IN THE ABSENSE OF FULL DETAILS I CAN ONLY ASK U TO GO TH EXPLANATIONS 2 AND 3 TO SECTION 9(1)(I) IF THE ARRANGEMENT ANSWERS TO THE DESCRIPTION THEREIN THEN IT WILL BE TRETAED AS BUSINESS CONNECTION LEADING TO TAXABILITY OF INCOME IN THE HANDS ON NR FURTHER THE FELLOW WILL BE TREATED AS AGENT OF NR UNDER SECTION 163
CA MANOJ GUPTA
JODHPUR
09828510543

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