tax on repatriation of profit of Indian company
This query is : Resolved
SREE PRAKASH
(Querist)
26 January 2008
Sir,
Please guide on the following matter.
An Indian software company(100% EOU) is having 95% foreign equity participation.It is also having a foreign director in the director board.
My queries are
1. If profit is repatriated how much tax will be payable, if any , on repatriation?, and also the tax on dividend declared.
2. Can salary be paid to foreign director, and if possible , what is the tax rate applicable?
3.Which is the best tax planning alternative?
Sree Prakash
Please guide on the following matter.
An Indian software company(100% EOU) is having 95% foreign equity participation.It is also having a foreign director in the director board.
My queries are
1. If profit is repatriated how much tax will be payable, if any , on repatriation?, and also the tax on dividend declared.
2. Can salary be paid to foreign director, and if possible , what is the tax rate applicable?
3.Which is the best tax planning alternative?
Sree Prakash
S.Srinivasaraghavan
(Expert)
26 January 2008
1. Are you asking about repatriation of dividends, yes, it is freely remittable. Only condition is Dividend Distribution tax should have been paid.
2. Yes, can be paid in Indian rupees, subject to the compliance of companies Act as regards remuneration limits etc and compliance of Income tax Act for TDS.
3. Question is too general to answer. It is depending upon actual facts of the case
2. Yes, can be paid in Indian rupees, subject to the compliance of companies Act as regards remuneration limits etc and compliance of Income tax Act for TDS.
3. Question is too general to answer. It is depending upon actual facts of the case
11 May 2012
The query has been answered, accordingly closed.
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