assessee opened a branch in Dubai and sent around rs 9 lakhs for office expenses. same were recorded in office expenses.
No other separate accounts were maintained. he maintained one single consolidated accounts.
what are the tax audit requirement for this considering assessee is an individual?
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Tax audit requirement for overseas branch.
Replies (3)
Quick Summary
Remittance it's not considered as taxable I come.
Kata hua tax refund kaise milega
Dubai branch expenses:
• A branch is part of the Indian entity. Branch expenses (Rs 9 lakh) are part of the Indian entity's books and P&L. Tax audit thresholds apply to the entity's total turnover (including branch), not separately.
• FEMA: opening a foreign branch requires compliance with the RBI's directions (for branch offices abroad by Indian entities, through the AD bank; remittances for branch expenses are permitted current-account transactions with reporting).
• If the branch creates a PE in Dubai, UAE corporate tax may apply on its profits (9% above AED 375,000). Indian tax applies on global income with FTC.
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