regarding section 9

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Sunku Venkata Subramanyam (Querist)

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.

Amol S Joglekar

Amol S Joglekar (Expert)

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.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

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.

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