Itr6 tax return e-filing issues faced by a foreign company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2016 Foreign company, not having any Indian establishment, getting amount as technical fee from Indian company on which TDS @ 10% is deducted as per DTAA treaty between the countries. This a "No Account Case" means no books of account or audit required. After e-filing we are getting notice under 139(9) from CPC asking us to fill up the P&L and B/S Sch completely.
We replied saying that in this case P&L and B/S will be shown as "0" still we are getting same notice again and again

Secondly as per DTAA treaty only 10% tax is leviable which is deducted at source and paid but while completing the tax return and calculating the tax liability if any then it shows surcharge, education cess and interest. To my knowledge this taxes are not applicable in case of DTAA.

Is it mandatory to file tax return in such cases ? Maintenance of books of accounts and audit report requirement ?

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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01 April 2016 If you are filing income tax return of foreign company having no PE in India, then books of accounts i.e. B/s and P & L a/c is necessary in that case. You have to fill that column.

Indian company will deduct withholding tax @ 10% as per DTAA provisions on payment of amount of technical services. As far as the matter of education cess while filling income tax return, these taxes are not applicable as per the provisions of DTAA.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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01 April 2016 as the foreign company is not having PE in india , and balance sheet is not prepared , then you do one thing , show the amount of technical fee paid in india as income in p& l account and in balance sheet columm , u show reserve on credit side and bank balance in debit side

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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