Whether the company liable to Assessed to tax in India

This query is : Resolved

Ajay Kumar Dokania (Querist)
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27 May 2009 A Nepalies company (Ltd. Co.) came to India and filed a tender at India as per news paper invitation made by State Government for supply of stone boulders etc.,and the co. supplied stone boulder about Rs.2000000/-during the financial year 2008-09 and get the payment after raising the invoice and submit the same at India . At the time of payment the department has deducted the income tax at source from the payment made by the State Govt. The company have no branch at India and further having no bank account in India and hn any place of business in india.The stone boulder has been supplied from Nepal to Nepal, as per purchase order. The department has issued the cheque for payment and get receipts of the cheques. Since the Nepalies Company having no bank account in India, so the company requested the Govt. department to issue the bank draft, payable at kolkata. The Govt. Department has made the Bank draft payable at Kolkata after filled up the application form of bank to issue the bank draft payable at kolkata in favour of the company. Then the company deposited the above drafts at standared charterd Bank Kolkata and collect the same at Nepal through bank.
Under the above circumstances, Kindly advise me , whether the company will have to file the I.T. return at India for the supplied goods, if yes under what residential status ?
Kindly Suggest.

A.K. Dokania

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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28 May 2009 In my opinion the income will be taxable since the payment has been received in India.
The status will be non-resident.

S.Anantharaghavan

S.Anantharaghavan (Expert)
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28 May 2009 A non resident if it does not have any permenant establishment in india. Then it will not be assessed in india. In the above case if the napalese company do not have any permenant establishment in india, it will not be assesed in india.