foreign operations
This query is : Resolved
19 December 2010
Hello experts,
If an indian co. wants to conduct business in another country(with which DTAA exists), which of the following is a better option from the perspective of taxation:-
1. Opening a foreing branch or
2. Float a whlly owned subsidary in that country.
Well.... according to me a branch would be a better alternative as a subsidary would amount to taxation of profits twice( i.e once in the foreign country and second in indian when dividend is declared, and if DDT exist in that country than it would be taxed twice).
Pls give your views on the same
If an indian co. wants to conduct business in another country(with which DTAA exists), which of the following is a better option from the perspective of taxation:-
1. Opening a foreing branch or
2. Float a whlly owned subsidary in that country.
Well.... according to me a branch would be a better alternative as a subsidary would amount to taxation of profits twice( i.e once in the foreign country and second in indian when dividend is declared, and if DDT exist in that country than it would be taxed twice).
Pls give your views on the same
20 December 2010
You are correct to the extent of DDT, but for that you will have to study the local tax provisions of that country in detail and even take help of a professional in the foreign country for the same.
The ultimate answer shall emerge only after studying the exact nature of tax regime of foreign country and the unlimited liability the Indian company is willing to take by having a branch in foreign country.
0-9810106211
The ultimate answer shall emerge only after studying the exact nature of tax regime of foreign country and the unlimited liability the Indian company is willing to take by having a branch in foreign country.
0-9810106211
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Opting our of sec 44AD
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Multiple trade mark
- FORM 26A APPLICABILITY
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
