Taxability occurred if providing services to the h.o in usa.

This query is : Resolved

Rajbeer (Querist)
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23 September 2015 Hi Everyone

We have a newly opened branch in india and we have a head office in USA. We are providing research and Development services and some other services to the head office which incurred income to the H.O. Is their any taxability occurred. if occurred then how much i pay the tax and how i calculate the tax and what is the process to pay the tax.

Guest

Guest (Expert)

23 September 2015 Are you saying that for the research activity done by Indian branch, your US head office had earned profits?

Rajbeer

Rajbeer (Querist)
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23 September 2015 We are doing R & D work and also doing work which is beneficial for the H.O. Can You is their any taxability occur. If occur how i calculate the tax and how i pay for it .

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Guest

Guest (Expert)

23 September 2015 for whatever cost indian branch had incurred, add a reasonable margin and pay income tax in that margin.That margin should be reasonable. The branch may have to get the PAN and file.

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Rajbeer

Rajbeer (Querist)
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24 September 2015 Thanks for the reply sir