Payment to foreign company

We are making payment of Royalty and  Professional Fees to Foreign Company after deducting TDS  @ 10%. My  querry is,  foreign company  has to file Income Tax return in India for the said income or not.

What is the procedure for foreign company after receiving Income from India. 

Replies (8)
Yes, foreign company needs to file tax return same as residents.

agree with above

follow section 115A(1)(b) and section 195.

https://taxbykk.blogspot.com/

follow section 115A(1)(b) and section 195.

https://taxbykk.blogspot.com/

Income Tax return is required to file on the income accrued in India.

Tax on dividends, royalty and technical service fees in the case of foreign companies.

115A(5) - It shall not be necessary for an assessee referred to in sub-section (1) to furnish under sub-section (1) of section 139 a return of his or its income if—

 (a)  his or its total income in respect of which he or it is assessable under this Act during the previous year consisted only of income referred to in clause (a) of sub-section (1); and

                       (b)  the tax deductible at source under the provisions of Chapter XVII-B has been deducted  from such income.

Dear Deepak,

 

Please tell me to which country you are making payment ?

 

Regards

Amit Mehta

Germany

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