Nri issue

This query is : Resolved

kirankumarreddy (Querist)
Follow

12 November 2011 Can any one help me out in resolving the below issue.
if a foreign company provides consultancy service to an indian company and in return it receives a fee from the indian company after deducting TDS and the foreign company had a PAN whether it need to file the return in INDIA?

Thanks in advance

Vishal D Shah

Vishal D Shah (Expert)
Follow

13 November 2011 No. Unless it has permanent establishment in India.

Yash Anandkumar Mandavia

Yash Anandkumar Mandavia (Expert)
Follow

13 November 2011 The income is accrued and received in India. So, in my humble opinion, the company has to file the return.

Upgrade to CAclubindia Pro. Subscribe Now!

Vishal D Shah

Vishal D Shah (Expert)
Follow

13 November 2011 My opinion was based on DTAA Provision. It can definitely avoid return filing. Would you still differ?

Vishal D Shah

Vishal D Shah (Expert)
Follow

13 November 2011 Otherwise it would mean that every company providing service to Indian company has to file return! That's incorrect in my humble opinion!