Opening a branch in USA

This query is : Open

Priyam (Querist)
Follow

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 ^_^

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

Priyam

Priyam (Querist)
Follow

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

22 September 2016 Remit all the amount through Authorised Dealer banks that is the requirement of RBI.

Priyam

Priyam (Querist)
Follow

22 September 2016 thanks for ur quick replies sir 🤗

Priyam

Priyam (Querist)
Follow

22 September 2016 adding to that, sir can you suggest if we should go for a branch or a subsidiary ?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Avisha Sinha

Tanishka Khandelwal

venkatesh c

K.Govindarajan

Rasheed Mohd Abdul

Subscribe Now

Opening a branch in USA

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

GST CONSULTANCY

Article Assistant

CA Final