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
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
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Reprocessing of rectification order AY 2025-26
- Gift Received from nonblood relative
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
