Poonawalla fincorp
Poonawalla fincorp

Dtaa - india & australia

This query is : Resolved 

04 November 2011 DEAR All,

If any indian organisation is plan to start Educational University in Australia and want to remitt the profit of Australian company to India. Then as per DTAA which of the following option is favorable :-
1. Create One Domestic company & become holding company of Australian Company.
2. Create One Domestic Company & also create one separate company in Australia.Then Australian company will remitt to profit Domestic company in the form of Commission/Donation/consultancy fees.
3. Create indian organisation under one educational trust & Create Separate Pvt ltd in Australia.Then Australian company will remitt to profit Domestic company in the form of commission/ Donation/ consultancy fees.
which of above is better option? You can also suggest better option then above.

06 November 2011 Dear Harshesh,

I think there is no difference in point no. 1 and 2 as Indian shall remain the holding Co. in both the cases.

As regards point no. 3 there is a mandatory requirement for registration of trust for a period not less that 3 years before opening a foreign Company.

Anuj
+91-9810106211
femaquery@gmail.com

06 November 2011 Thank u dear.
In case of Point 1 & 2, if we Australian company want to remit some amount to Domestic company then which option is best???? 1. In the form of Dividend or 2. Management Consultancy Fees.




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