Tax Treatment in International Taxation
This query is : Resolved
14 July 2011
Indian Company is having a 100% foreign subsidiary. The profits earned by that foreign subsidiary will be taxable in foreign country and also in India. What will be the tax treatment? Who will pay the tax and how? Whether Indian Company will pay it?
15 July 2011
The subsidiary being a separate legal entity
will have to pay the taxes.
Holding company is just like a shareholder in the company.
will have to pay the taxes.
Holding company is just like a shareholder in the company.
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15 July 2011
Thanks.... Sir......
15 July 2011
Moreover the dividends if any declared by the foreign subsidiary shall be taxable @15.45%(special scheme applicable for this year only).
Also the Indian company can claim credit of taxes paid in foreign country(depending on the country)on such dividends.
Also the Indian company is also required to file Statement of Assets & Liabilities in respect of such investment outside India.
Anuj
0-9810106211
Also the Indian company can claim credit of taxes paid in foreign country(depending on the country)on such dividends.
Also the Indian company is also required to file Statement of Assets & Liabilities in respect of such investment outside India.
Anuj
0-9810106211
Message likes :
1 times
16 July 2011
Thanks a lot Anuj Sir for your information
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