Money received from outside-india

Hi, 

If i receive money from a company based in usa
OR
If my indian company receives money from that company based in usa... how much tax will be paid in India on the money received?

Thank you !

Replies (6)
Quick Summary
This discussion clarifies the tax implications in India for money received from a US-based company. If an Indian company receives funds, it's subject to a flat corporate tax rate on declared profits, potentially benefiting from Double Taxation Avoidance Agreements (DTAA) and needing to comply with transfer pricing rules. If an individual receives money directly, it's taxed at their applicable slab rates.

How much is the annual income?
Post actual values and actual scenarios, it is realistic.
Why You received money from them...???
What reason...???
Indian Company receiving would pay 25.168% flat tax on the declared profits. whereas if you receive it directly,you will be taxed at slab rates on the declared profits
That is MAT

An Indian company is liable to pay corporate tax on its global income. Therefore, any income received from the US-based company will be included in its total income and taxed at the applicable corporate tax rate. 

  • DTAA Benefits: Like individuals, companies can also take advantage of the DTAA between India and the USA.
  • Transfer Pricing Regulations: If the Indian company and the US company are related parties, transactions between them must adhere to transfer pricing regulations to ensure they are at arm's length.

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