Incorporation & taxation
This query is : Resolved
14 November 2012
Hi,
If a company incorporated in US and providing services - advisory of nature to Indian citizens through online -
- is that company required to be incorporate in India
- what is its taxable status as per Income Tax act
If a company incorporated in US and providing services - advisory of nature to Indian citizens through online -
- is that company required to be incorporate in India
- what is its taxable status as per Income Tax act
15 November 2012
1. No
2. Depends on the exact nature of services provided by US Company, but as per my past experience , the same should not be taxable in India, provided TRC and NO PE Certificate are obtained.
Anuj
femaquery@gmail.com
2. Depends on the exact nature of services provided by US Company, but as per my past experience , the same should not be taxable in India, provided TRC and NO PE Certificate are obtained.
Anuj
femaquery@gmail.com
15 November 2012
Services are basically like financial advisory / financial planning kind of..
also if the controlling stake is held by a resident Indian will it change the status of the company as mentioned in the query
also if the controlling stake is held by a resident Indian will it change the status of the company as mentioned in the query
15 November 2012
Mr Anuj is correct but.....
As Indians are getting services so naturally they are remitting the funds to USA. And in such a case procedure related to Form 15CA and 15CB comes into and Income Tax gets applied in shape of TDS.
Status of the Company will not get changed but continue to be governed by US laws
As Indians are getting services so naturally they are remitting the funds to USA. And in such a case procedure related to Form 15CA and 15CB comes into and Income Tax gets applied in shape of TDS.
Status of the Company will not get changed but continue to be governed by US laws
15 November 2012
FEMA doesn't allow a resident Indian to hold controlling stake in US Corporation on individual basis.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
16 November 2012
Thanks a lot for the replies..Also can you pl confirm on how a resident individual can incorporate a company in US - what are the other alternatives available.
27 November 2012
Also I understand from internet that it is possible to incorporate a company in US without any capital - is this True..? If so will this be contravention of any FEMA rules if incorporated by an individual..? Kindly confirm
28 November 2012
Yes, there shall be contravention under FEMA.
As per FEMA Indian Individuals are not allowed to SUBSCRIBE to the MOA of Foreign Co. and even non paying of any capital can invite penalty of Rs. 2,00,000/-.
Anuj
femaquery@gmail.com
As per FEMA Indian Individuals are not allowed to SUBSCRIBE to the MOA of Foreign Co. and even non paying of any capital can invite penalty of Rs. 2,00,000/-.
Anuj
femaquery@gmail.com
28 November 2012
Thanks a lot for the reply and by the way is the answer the same even if its LLC where there is no MOA, etc
28 November 2012
LLC stands for Limited Liability Company and as per my knowledge it has to have an MOA.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
29 November 2012
To the extent I understand even an operating agreement & Articles of Organisation will do in case of an LLC,
29 November 2012
Intent of FEMA is very clear, its an individuals choice to interpret in any manner.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
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