06 January 2015
We have our Head office in USA. In India we have a branch office. Recently we have filed the IT returns for the AY 2014-15. Now we have received notice from IT dept saying that the return is having some error. the Error is " Domestic status is mentioned as NON-DOMESTIC" but the residential status entered is RESIDENT, in the return." Please suggest me how to resolve this issue in the revised return.
I have recently faced the same issue. Should you go through the suggested resolutions by the IT department, they would process the return as foreign company and compute tax accordingly, which should be the case.
CAclubindia
