Opening a branch in USA
This query is : Open
21 September 2016
hi
my client is an indian pvt ltd co. it provides software services i.e service tax is applicable.
it wants to open a branch in USA. Can you explain the income tax implications in the above scenario in regard to branch.
thanks in advance
plz leave a quick reply ^_^
22 September 2016
Service tax not applicable on export of software.
Branch has to pay US tax(Federal tax) on the income earned in US. Total income including US income is taxable in India but relief can be claimed on US taxes paid.
Branch has to pay US tax(Federal tax) on the income earned in US. Total income including US income is taxable in India but relief can be claimed on US taxes paid.
22 September 2016
Thanks a lot sir and one more thing,
if the branch remits income to india then in that case what are the provisions applicable under FEMA and RBI ACT
22 September 2016
Remit all the amount through Authorised Dealer banks that is the requirement of RBI.
22 September 2016
adding to that, sir can you suggest if we should go for a branch or a subsidiary ?
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