07 February 2019
Hello sir I got little bit confused while reading taxability in case of foreign company. In income tax act definition is Foreign company is a company which is not domestic company.
And domestic company means company which is Indian company or..........
And Indian company means company which is registered under companies act 1956 (currently 2013) Conclusion as per incometax act foreign company means company which is not registered under companies act 1956 or 2013. Then foreign company as per companies act 2013 is a company incorporate outside India and........... ---....
Then my question is 1. Foreign companies are not registered under companies act ? 2. Whether foreign Company does not use words private limited or ltd 3 what are the example of foreign company operating in india which pay 40 tax and 2-5 % surcharge ( to which provision of international taxation applies)
Thank in advance Pleas reply I know I am confused by reading bare laws.
07 February 2019
unless you are a research student (PhD), do not mix the two acts. (say for example Non resident as per FEMA and Non resident as per Income Tax.....) Foreign Company uses the word as per the law of land......e.g. inc in USA etc. The case of Vodafone is famous for 40% taxation.