Itr6 tax return e-filing issues faced by a foreign company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2016
Foreign company, not having any Indian establishment, getting amount as technical fee from Indian company on which TDS @ 10% is deducted as per DTAA treaty between the countries. This a "No Account Case" means no books of account or audit required. After e-filing we are getting notice under 139(9) from CPC asking us to fill up the P&L and B/S Sch completely.
We replied saying that in this case P&L and B/S will be shown as "0" still we are getting same notice again and again
Secondly as per DTAA treaty only 10% tax is leviable which is deducted at source and paid but while completing the tax return and calculating the tax liability if any then it shows surcharge, education cess and interest. To my knowledge this taxes are not applicable in case of DTAA.
Is it mandatory to file tax return in such cases ? Maintenance of books of accounts and audit report requirement ?
We replied saying that in this case P&L and B/S will be shown as "0" still we are getting same notice again and again
Secondly as per DTAA treaty only 10% tax is leviable which is deducted at source and paid but while completing the tax return and calculating the tax liability if any then it shows surcharge, education cess and interest. To my knowledge this taxes are not applicable in case of DTAA.
Is it mandatory to file tax return in such cases ? Maintenance of books of accounts and audit report requirement ?
01 April 2016
If you are filing income tax return of foreign company having no PE in India, then books of accounts i.e. B/s and P & L a/c is necessary in that case. You have to fill that column.
Indian company will deduct withholding tax @ 10% as per DTAA provisions on payment of amount of technical services. As far as the matter of education cess while filling income tax return, these taxes are not applicable as per the provisions of DTAA.
Indian company will deduct withholding tax @ 10% as per DTAA provisions on payment of amount of technical services. As far as the matter of education cess while filling income tax return, these taxes are not applicable as per the provisions of DTAA.
01 April 2016
as the foreign company is not having PE in india , and balance sheet is not prepared , then you do one thing , show the amount of technical fee paid in india as income in p& l account and in balance sheet columm , u show reserve on credit side and bank balance in debit side
01 April 2016
as the foreign company is not having PE in india , and balance sheet is not prepared , then you do one thing , show the amount of technical fee paid in india as income in p& l account and in balance sheet columm , u show reserve on credit side and bank balance in debit side
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