Tax on foreign branch profits?
This query is : Resolved
Purushotham
(Querist)
11 May 2012
Dear Sir,
we have a branch in foreign country and the foreign branch is in profit and we have paid the tax over there on the profits..
whereas our india company is also in profits and we have also paid the tax on the same..
here my question is when we are clubing both foreign branch and indian branch financials we are again liable to pay tax on net income?? please help me out and let me know if there is any DTC for concern issue...
Regards,
Purushotham Taduka
we have a branch in foreign country and the foreign branch is in profit and we have paid the tax over there on the profits..
whereas our india company is also in profits and we have also paid the tax on the same..
here my question is when we are clubing both foreign branch and indian branch financials we are again liable to pay tax on net income?? please help me out and let me know if there is any DTC for concern issue...
Regards,
Purushotham Taduka
Vishal D Shah
(Expert)
11 May 2012
Mr Purshottam, tax will be on total income including branch profits. You will get credit for the taxes paid abroad a per sec 90 of income tax act. Also refer relevant dtaa provisions.
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