DTAA with Hong Kong (China)
This query is : Resolved
09 February 2011
There is one Indian Company
The source of revenue of company is the commission income. The company import machinery from Hong Kong (China) and deliver the same to the various companies in Indian. The commission is earned by an Indian company from the said Chinese company and not from the purchasing Indian Company.
Now,
What are the option which companies can explore to avoid higher tax? Even company is ready to create company in China to avoid higher tax liability and keep the commission income outside India. India have DTAA with China, so according to your opinion, what should be done?
The source of revenue of company is the commission income. The company import machinery from Hong Kong (China) and deliver the same to the various companies in Indian. The commission is earned by an Indian company from the said Chinese company and not from the purchasing Indian Company.
Now,
What are the option which companies can explore to avoid higher tax? Even company is ready to create company in China to avoid higher tax liability and keep the commission income outside India. India have DTAA with China, so according to your opinion, what should be done?
13 February 2011
With the chances of DTC coming and the GAAR provisions in sight, I will rather suggest to bring the income in India and do whatever adjustments with the net profit .
Anuj Gupta
9810106211
Anuj Gupta
9810106211
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