Return of Income

This query is : Resolved

Yogesh Kumar (Querist)
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12 December 2010
An Indian company is 100% subsidiary of a foreign company.

Subsidiary company is paying royalty to its Holding Company (i.e. foreign company)

Now the issue is, Can Assessing Officer compels the Holding Company to file its return in India for the royalty (i.e. Income Attributable to India).

1.Is there any Legal provision for the same?

2.Assessing Officer can also make notice under section 142(1)?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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13 December 2010 Reply of both the questions is "No"

Assessing officer can only raise demand on 100% subsidiary to deduct TDS on on royalty payment u/s 195.