We provide Tax & Business Services to both Companies in OR Registered Outside India

  Income, Sales & Service Tax Filing for Companies.

  Tax Consulting & Planning Services for Companies.

  Double TAX Avoidance Services for Companies.

  TDS Refund & Claiming Services for Companies.

  Business Formation & Company Registration Services.

  Various other Personalized Services for Companies.

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Few Tax Pointers for INTERNATIONAL COMPANIES:

• The tax liability of a foreign company is dependant on (a) its tax liability under the Income Tax Act & (b) The Double Taxation Avoidance Agreement (DTAA) if any, between India and its home country.

• Foreign companies on the other hand, are essentially taxed on the income earned through a business connection in India or from other Indian sources. Therefore if a foreign company does not have any business connection in India, then business income of such company cannot be taxed.

• The business connection does not include cases where the business activity is carried out through a broker, general commission agent or any other agent having an independent status if such person is acting in the ordinary course of the business.

• The term �permanent establishment� includes a place of management, a branch, an office, a factory, a workshop, a mine, oil well or other place of extraction of natural resources, a building site or construction or assembly project which exist for an agreed period. However the term PE does not include certain activities such as a sales office in which individuals do not have the capacity to contract and whose primary functions are simply advertising the products.

• In short a PE exists when a company has a fixed place of business located in a foreign jurisdiction through which activities of a company are wholly or partially carried on.

• India has entered into DTAAs with about 70 countries. The provisions of these agreements take precedence over the provisions of the IT Act, except insofar as the provisions of the IT Act are more beneficial to the foreign companies. The agreements also provide for concessional rate of tax in respect of royalties, dividend, fees for technical services and interest.

• If foreign companies receive Income from Indian companies by the way of royalties, dividend, fees for technical services, then it is taxable in India and in this case, it is mandatory for foreign companies to file taxes in India.