non resident company tax

Tax queries 650 views 2 replies

madhavvan

service

154 Points Posted on 03 June 2010

a non resident company based in germany has been awarded a contract for installation and commissioning services in india and it has been given a place inside factory premises of the indian company

it receives payments for the services in its bank a/c abroad for services rendered in india

queries

whether the non resident foreign company is required to file its return in india and is the rceipt taxable and under which head and what is rate of tax is tax audit required to be carried out since the fees received exceeds rs. 40 lacs

can the non resident foreign company claim credit for tds deducted on the payments received abroad for services rendered in india if it files its return in india.

is non resident foreign company required to dedcut tax at source on payments made in india in respect of services rendered in india and is it required to file tds returns and can it issue tds certificates

Replies (2)

Nitesh Bhandari

Ca Finalist Articled Trainee

93 Points Posted on 03 June 2010

Originally posted by : madhavvan
	a non resident company based in germany has been awarded a contract for installation and commissioning services in india and it has been given a place inside factory premises of the indian company it receives payments for the services in its bank a/c abroad for services rendered in india queries whether the non resident foreign company is required to file its return in india and is the rceipt taxable and under which head and what is rate of tax is tax audit required to be carried out since the fees received exceeds rs. 40 lacs can the non resident foreign company claim credit for tds deducted on the payments received abroad for services rendered in india if it files its return in india. is non resident foreign company required to dedcut tax at source on payments made in india in respect of services rendered in india and is it required to file tds returns and can it issue tds certificates

1. As per section 5 - scope of total income the amount which accrues or deemed to have been accrued in india (sec 9) will be taxable irrespective of place of receipt.

2. Every assessee who satisfies the conditions in section 139(1) have to file the Return of income so this non resident company being involved in biz. in india will have to file its returns.

3. it will have to deduct tds and file quaterly and annual returns also it can claim the TDS credit.

You may also refer the double taxation avoidance Agreement (DTAA) between India and germany