Taxability impact on foreign company in india

Dear Sir / madam

              One Company registered in US. does not have Registered Office in INDIA.

              Personnel working from INDIA for that company are retained as consultants and money disbursed as consultancy fee once a month.

              A separate Account is maintained for this and US dollars are converted into Indian Rs. and payments are settled for all those clients who did consultancy services for them.(US COMPANY).

           Currenty, the Company does not generated any revenue from  INDIA.

The Auditors of the Company in US, advised the Company to retain the 35% disbursement of payment made to INDIA as a tax.

            Please advise regarding this query.

the Foreign Company is like to start a

                    BRANCH OFFICE in INDIA   or

                  Subsidiary  Company in INDIA or

                  Wholly Indian Company having MOU with Foreign Company..

 

Which option is best or suitable for the Company for taxabiliy purposes.

 

                 

 

       

Replies (1)

Every option specified has its own advantages and disadvantages.

That needs to be decided on the facts of the case.

 

Anuj

femaquery @ gmail.com

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