If a company incorporated in US and providing services - advisory of nature to Indian citizens through online - - is that company required to be incorporate in India
- what is its taxable status as per Income Tax act
2. Depends on the exact nature of services provided by US Company, but as per my past experience , the same should not be taxable in India, provided TRC and NO PE Certificate are obtained.
As Indians are getting services so naturally they are remitting the funds to USA. And in such a case procedure related to Form 15CA and 15CB comes into and Income Tax gets applied in shape of TDS.
Status of the Company will not get changed but continue to be governed by US laws
16 November 2012
Thanks a lot for the replies..Also can you pl confirm on how a resident individual can incorporate a company in US - what are the other alternatives available.
27 November 2012
Also I understand from internet that it is possible to incorporate a company in US without any capital - is this True..? If so will this be contravention of any FEMA rules if incorporated by an individual..? Kindly confirm
28 November 2012
Yes, there shall be contravention under FEMA.
As per FEMA Indian Individuals are not allowed to SUBSCRIBE to the MOA of Foreign Co. and even non paying of any capital can invite penalty of Rs. 2,00,000/-.
CAclubindia
