International taxation

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lokesh (Querist)
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28 October 2013 There is XYZ Co. Incorporated in Britain(UK).It has set up branch in India,it has office here and some employees working for them.
what wil be the tax treatment in India if

1.The branch In India procures just orders for HO and all other activities are done in UK.
(or)
2.The branch just provides services to Ho

please help me regarding the above issue

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 October 2013 whatever income that can be attributable to Indian operations shall be taxed in India.

You need to check PE implications. If a PE is formed in India (and it generally does in case of Branch), the profit attributable to it is taxable in India at the rate applicable to foreign company.

Following links may prove helpful:

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Instructions/CBDTLaws/HTMLFiles/chp4_220.htm

https://www.asialaw.com/Article/1970867/Channel/16958/Tax-Planning-Branch-Office-or-Corporate-Entity.html

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