Foreign company is completely owned by an Indian company ? Permanent Establishment of a foreign entity in India? One or some of the Directors of a foreign company reside in India? Local management being situated in India in respect of activities carried out by a foreign company in India? The existence in India of support…
Place of business Documents of FCO’s place of business Licenses/trademark of business operations of FCO List of functions perform in FCO with supportive evidence Key Management Number of Key Management residing outside India Travel date from passports – in/outside India Visit of Foreign management to India and purpose of visit Records of key management meetings…
CONSEQUENCES Filing of FCO’s regular income-tax returns in India. Global incomes will be taxable in India. FCO’s have to pay advance tax and self-assessment tax as applicable. FCO’s will have to maintain regular books of accounts, vouchers and documents like any other Indian resident companies. FCO’s have to obtain TAN and comply with TDS requirements. Companies will have to get their accounts audited.…
DEFINITION ‘Active Business outside India’ is defined as: if the passive income is not more than 50% of its total income; and less than 50% of its total assets are situated in India; and less than 50% of total number of employees are situated in India or are resident in India; and the payroll expenses…
INDIAN RULINGS ON POEM The Supreme Court in the case of Erin Estate Vs CIT [1958] 34 ITR 1(SC) (Against the assessee)considered following as relevant criteria: Purchase decisions. Employee engagement decisions. Capital investment decisions. Sales and marketing decisions Annual budget approval. The Delhi Tribunal decision in the case of Radha Rani Holdings Private Ltd [2007] 16 SOT 495 (DELHI).…
Place of effective management” is defined in the Act to mean a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance, made.
Joint Development Agreement “JDA” is an arrangement in which land owner introduce land and developer agrees to develop land for agreed consideration in cash or kind or both.
News around the financial corner of Indian economy are summarized here. It covers important due dates, Income tax Rulings of this month, Circulars and notifications relevant for business houses, advisors, tax consultants, lawyers. Reader should take 5-10 minutes to glance it. SNCO_Newsletter_Mar 2017
