Taxation of an American company managed from India

Tax queries 893 views 3 replies

Sandeep

56 Points Posted on 04 June 2013

Hi All,

I don't know if this is the perfect place to ask this. I have an online business(blog, forums and online apps) which are operated solely by me from any location(as no office is required). I was thinking/planning of registering an American company(LLC) for this business for obvious reasons. Just to mention:

There wont be any physical office/presence as such in India(apart from I living here).
The company wont be incorporated in India.
I would be the only owner/shareholder of the company and would operate it virtually from my home/park/CCD etc.
The servers of the websites wont be in India and the money recieved and paid would be within the USA(I mean bank account in USA). In short no assets would be located in India

What would be the taxation of this company? Will I be requried to file tax returns or pay corporate tax for this company?

Feel free to provide further info if that helps.

Thanks

Replies (3)

Amber Jain

Article Assistant

206 Points Posted on 04 June 2013

Hello Sandeep,

As your substantial business will be done from India the effect of Taxation will be india & in USA also in which state you are planning to setup your business.

Thanks & Regards

Amber Jain

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Posted on 04 June 2013

a company incorporated outside india but fully controlled form india is also regarded as resident company

so here the company is resident company.so IT ACT1956 will be applicable

Sandeep

56 Points Posted on 05 June 2013

Originally posted by : nuli swami ayyappa
	a company incorporated outside india but fully controlled form india is also regarded as resident company so here the company is resident company.so IT ACT1956 will be applicable

Originally posted by : Amber Jain
	Hello Sandeep, As your substantial business will be done from India the effect of Taxation will be india & in USA also in which state you are planning to setup your business. Thanks & Regards Amber Jain

Thanks a lot also please let me know if the company has already paid corporate tax in the USA as its required, is there any tax treaty that will avoid it from paying taxes here? or the taxes need to be paid here as well?