Taxability of income in which country ?

Tax planning 187 views 2 replies

Company registered in india providing service to US client and they are paying taxes in india. Now company wants to open a permanent establishment (PE) in US. company still providing services from india to US client without any help from US Branch or "PE". Now what is the taxability of the same in US and India about services provided by india to US. Is that taxable in US as company having "PE" in US ?

Replies (2)
yes it will be taxable in us as company is having "pe" in us.
Yes, the profits earned by India company will be taxable in US but the India company can claim tax credits paid in US while filing it's return of income in India. Secondly, it's not necessary year the India company has PE incorporated in USA. If the India company under article 5 constitutes a PE even though not incorporated a branch, it will be still taxable in USA again it claim tax credits for tax paid in US


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