Taxes Applicable to Foreign company

tax rate i.e. income tax is flat 40 %

• For dividends 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States
   
• For interest gains 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States
   
• For royalties 30% in case of non-treaty foreign companies and 20% for companies under the treaty based in United States
   
• For technology based services in case of non-treaty foreign companies and 20% for companies under the treaty based in United States
   
• For other kinds of income and gains 55% in case of non-treaty foreign companies and 55% for companies under the treaty based in United States
   
• Attention must be given on levying inter corporate rates in case the holding is minimum
   
• Attention must be given on the fact that the sanctions of the tax authorities on tax withholding
   
• Attention must be given on the several of the tax treaties India signed with the other countries and also the various encouraging tax rates