Foreign Company

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Kumar (Querist)
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18 October 2007 Dear All,

How foreign Co. and domestic Co. is differentiated under IncomeTax Act.Also what is the rate of tax applicable on such Companies.

With Best Regards,
RK

Shashwat Shekhar

Shashwat Shekhar (Expert)
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18 October 2007 Domestic company [Section 2(22A)]:- means an Indian company (i.e. a company formed and registered under the Companies Act,1956) or any other company which, in respect of its income liable to tax, under the Income Tax Act, has made the prescribed arrangement for declaration and payments within India, of the dividends payable out of such income. A domestic company may be a public company or a private company.

Foreign company [Section 2(23A)] :- means a company whose control and management are situated wholly outside India, and which has not made the prescribed arrangements for declaration and payment of dividends within India.

Shashwat Shekhar

Shashwat Shekhar (Expert)
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18 October 2007 What kind of tax u wan to know? FBT?MAT?DDT?

Shashwat Shekhar

Shashwat Shekhar (Expert)
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18 October 2007 Domestic corporations- tax rate of 35% and a 2.5% surcharge
Foreign corporations- tax rate of 40% and a 2.5% surcharge