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Income of foreign company

Tax queries 348 views 1 replies

We are paying Royalty to Foreign Company after deducting TDS @ 20%. In this reg. my querry is weather they have to pay Income Tax as per IT Act.  in India or not. They dont have any braches in india.

Replies (1)

Why would you pay income tax as this is not Indian Company's Income. As regards foreign company's Income , TDS has already been deducted by you and nothing further is required from your end.

 

However Foreign Company can do the following things:

  1. Obtain PAN and furnish the same to you so that Indian Company can revise its TDS return .
  2. Foreign Company can file the return of income and claim refund for the same.

Anuj

+91-9810106211

femaquery @ gmail.com


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