Fema & income tax
This query is : Resolved
05 August 2011
ABC IS A COMPANY IN INDIAN WANTS TO ESTABLISH SUBSIDIARY IN UAE TO IMPORT CRUDE OIL AT CHEAP RATE
MY QYERRY IS : WILL SUBSIDIARY INCOME TAXABLE IN INDIA IF SUBSIDIARY HAS ITS OWN MANAGEMENT IN UAE TO CONTROL DAY TO DAY OPERATION ?
MY QYERRY IS : WILL SUBSIDIARY INCOME TAXABLE IN INDIA IF SUBSIDIARY HAS ITS OWN MANAGEMENT IN UAE TO CONTROL DAY TO DAY OPERATION ?
05 August 2011
All I have to say on your query is the as far as Income tax as well as FEMA has jurisdiction over the subsidiary.
Under FEMA “ person resident in India” is defined to include an office, branch or agency outside India owned or controlled by a person resident in India. Since the subsidiary is owned by a company in India therefore FEMA has the jurisdiction.
For further clariication please be free to write.
Regards,
CA. Sudha G. Bhushan
sudhag999@gmail.com
Under FEMA “ person resident in India” is defined to include an office, branch or agency outside India owned or controlled by a person resident in India. Since the subsidiary is owned by a company in India therefore FEMA has the jurisdiction.
For further clariication please be free to write.
Regards,
CA. Sudha G. Bhushan
sudhag999@gmail.com
05 August 2011
As regards FEMA is concerned you have got the proper answer from the expert but as regards income tax is concerned if any income is earned by a company the same is to be taxed in that country. If at all any income is as per DTA then the Indian company shall get the rebate on tax.
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