Indian firm cab have a foreign Branch

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omprakash jain (Querist)
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02 July 2011 Hi All

Whether a Indian partnership Firm can have Foreign Branch for abroad clients. And in that case the Foreign Branch Exp and Income as its taxable here. Do we need to deductd TDs on Rent Paid by Foreign Branch to landlord abroad.

Regards

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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03 July 2011 Yes the Indian firm can have foreign branch.Yes the foreign branch's Income and expenses shall be merged with Indian Firm's Profit & Loss Account.

Yes TDS is needed to be deducted under sec. 195 for payment of rent or other expenses. Any benift under DTAA of country in which such branch is located can also be availed of.

Anuj
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