Taxation-us-based-wholly-owned-subsidiary-whichhas no-income
This query is : Resolved
01 November 2012
Dear experts/ Respondents having exposure of corporate tax laws,
My query is There is US based wholly owned subsidiary which provides services from India to clients at international location on behalf of Company / Inc in US. For that Inc. will pay all admin cost & salaries of wholly owned subsidiary in India. As per FDI policies for wholly owned subsidiary all acts & regulations including income tax act are applicable as if it is Indian company. Is Transfer pricing will applicable in this case? because in website of Deloitei there is a case law of Whirlpool Inc/Pvt Ltd. in that specified that if there are no revenues Transfer pricing provisions will not apply. Looking for your reply only if you know.
Nature of Business / Indutry: Like BPO Assisting in Medical suits /cases, Callings / Transcription.
My query is There is US based wholly owned subsidiary which provides services from India to clients at international location on behalf of Company / Inc in US. For that Inc. will pay all admin cost & salaries of wholly owned subsidiary in India. As per FDI policies for wholly owned subsidiary all acts & regulations including income tax act are applicable as if it is Indian company. Is Transfer pricing will applicable in this case? because in website of Deloitei there is a case law of Whirlpool Inc/Pvt Ltd. in that specified that if there are no revenues Transfer pricing provisions will not apply. Looking for your reply only if you know.
Nature of Business / Indutry: Like BPO Assisting in Medical suits /cases, Callings / Transcription.
02 November 2012
No, you have misunderstood the thing.
If the Indian Company is wholly owned subsidiary of US Co. then transfer pricing shall apply for ANY transaction between "ASSOCIATED Enterprises" i.e. US Company and Indian Subsidiary.
Anuj
femaquery@gmail.com
If the Indian Company is wholly owned subsidiary of US Co. then transfer pricing shall apply for ANY transaction between "ASSOCIATED Enterprises" i.e. US Company and Indian Subsidiary.
Anuj
femaquery@gmail.com
02 November 2012
Thanks for responding,
Can you guide in with more details: like.,
required documents to prove the transactions
best suitable pricing method when no price has been charged by indian firm(My opinion is CUP metod
Can you guide in with more details: like.,
required documents to prove the transactions
best suitable pricing method when no price has been charged by indian firm(My opinion is CUP metod
02 November 2012
In case of BPO(as specified by you) Cost plus method is normally the most appropriate method.
Also the TP Report along with annexures should be prepared.
Anuj
femaquery@gmail.com
Also the TP Report along with annexures should be prepared.
Anuj
femaquery@gmail.com
Message likes :
1 times
02 November 2012
Thanks once again,
Attribution rules for determining profit of PE are relevant, if so please specify the source.
Attribution rules for determining profit of PE are relevant, if so please specify the source.
06 November 2012
Vijay,
I am not clear with your query.
Anuj
I am not clear with your query.
Anuj
14 November 2012
I agree with the experts
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- SFT Cash Deposit in Current Account
- Copyright software
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
