International taxation
This query is : Resolved
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
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
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
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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