APPLICABILITY OF SECTION 206AB TO FOREIGN COMPANIES

Section 206AB is not applicable to a non-resident who does not have a Permanent Establishment in India. Hence, if Singapore Co does not have a Permanent Establishment in India, section 206AB is not attracted. Please note that the facts mentioned in the query is very brief and it is not possible to confirm whether Singapore Co has a Permanent Establishment or not. A detailed understanding of facts and consequent research would be required to determine whether Singapore Company has a Permanent Establishment in India or not.

The section does not provide that the Permanent Establishment should be involved in the transaction. Hence, since Singapore Co has Permanent Establishment in India, the provision of section 206AB should get attracted. On a separate note, it is mandatory for a Foreign Company's Indian PE to file a tax return in India