04 April 2011
We are entering into a consultancy agreement with a foreign comapany, now we have to deduct witholding from the payment , so is the foreign firm liable to file income tax return in india for availing witholding benefit deducted under DTAA.
if yes wheather such filling of retun tantamount to having PE in india for foreign company
05 April 2011
Yes the foreign firm is liable to file return of income in India.Whether the foreign firm wants to avail the DTAA benifit or is eligible to claim the DTAA benifit shall no way absolve the liability of foreign firm to file the reurn of income in India.
But you as a deductor shall be only concerned with the correct deduction of TDS.
No, such filling of retun shall not tantamount to having PE in india for foreign company .
CAclubindia
