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Project office

AS 368 views 4 replies
If an Italian Company set up a project office in India, then what accounting year the project office should follow i.e. whether from Jan to Dec or from April to March. ?
Replies (4)
since it is establish in India income will be taxable in India hence it has to follow indian indian accounting year..

Thanks Rahul for your reply,

Though i was inquisitive on the point that when section 2(41) of companies Act gives an option to holding or subsidiary of a foreign company to follow a different
financial year for its accounts consolidation purpose by seeking approval from CLB, then whether such option dwells with Project Offices which are operational in the capacity of a foreign company ?

 

But that is only for accounting purposes and not for income tax purposes... In income tax act u should follow financial year concept only....
@ Supra ji.
since your point is valid that they can opt Jan to Dec financial year . in the act sec 2(41) say it can be used for consolidation of account from the company which is incorporated outside India.


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