Q: Foreign ownership firm & Domestic Status

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modern mind

Student

26 Points Posted on 11 June 2009

Hi! All,

I am a student & for my research I need to know urgently whether a foreign ownership firm is enjoying a domestic status for the tax purpose?

1) What conditions regarding payments and declaration of Dividend the firm has to meet to enjoy domestic status?

2) Does all of the dividend has to be disbursed within india ?

I would appreciate any suggestion or help regarding this matter.

Replies (3)

CA Lovenish Bansal

JOB

314 Points Posted on 11 June 2009

In my Opinion, If AGM of company held in India and dividend is declared than company gets domestic status. It is not necessary to make pay all dividend in India but it must be paid from India

Thanks,

modern mind

Student

26 Points Posted on 11 June 2009

Originally posted by :Lovenish Bansal
"	In my Opinion, If AGM of company held in India and dividend is declared than company gets domestic status. It is not necessary to make pay all dividend in India but it must be paid from India Thanks,	"

1) Thanks, for the reply how to check whether the management i(i guess AGM ) held in india.

2) if the company is not declaring any dividend income over the years can we say it is have "foreign status"?

3) I had read in the news papers that foreign company does not have to pay dividend tax? can this be used.