International taxation of individual : dtaa

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2012 Facts of the case :

Mr.X a Non Resident of USA and a Resident Indian is an owner of LLC in USA.

LLC do the business of 100000$ in USA and spent 90000$ for the business and on Business income of $10,000. on this business incoem it pays applicable taxes in USA @ 15% i.e. $ 1500.

What will be the tax implication for the balance $ 8500. if Mr. X

1) Bring this $ 8500 in India, Will it be taxable in india? will DTAA would come in focus ? What about Transfer pricing ?

[ considering the fact LLC is located in India but managed & Control by owner Mr. X in india. ]

2)Do not bring $ 8500 in India.

Will it be taxable in india? will DTAA would come in focus ? What about Transfer pricing ?

[ considering the fact LLC is located in India but managed & Control by owner Mr. X in india. ]

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Amol S Joglekar

Amol S Joglekar (Expert)
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17 October 2012 LLC is in USA. not registered in India. Since, during that year, the control and management of its affairs is situated wholly in India, it is liable to income tax in India. The company can take the benefit of 90 or 90A or 91, as the case may be.