regarding section 9
This query is : Open
10 August 2017
A foreign company (X Inc ) sold goods to a Indian company (y Ltd). income arises by these transaction, to foreign company is taxable in India?
1.foreign company has no business connection India.
2. There is no DTAA between above countries
many people said that business income of non resident only taxable in India if he is having any business connection India. but where it is specifically provided in section 9,
sec 9 says that any income, whether directly or indirectly, through or from a business connection in India is deemed to be accrue or arise in India.
in the given case the foreign company accrued above income in India. as per section 5 any income accrued in India is taxable.
10 August 2017
Are you sure, X Inc has NO business connection in India?
If you agree that there is NO business connection in India, then the income is NOT taxable in India.
If you agree that there is NO business connection in India, then the income is NOT taxable in India.
10 August 2017
Take it in this way.
X Inc is exporting the products on which import duty will be paid by Y Ltd.
We don't apply income tax if the Foreign company has no business connection in India.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
