Tax implication
This query is : Resolved
07 September 2015
We are subsidiary company situated in india but our holding company is located at japan.
we are trading company in india & our goods are manufactured in japan, one of our client located at sri lanka, he wants goods at sri lanka & payment received in india & invoice raised in india but goods are delivered from japan to sri lanka. can we treated as sales in india & PLZ Do let me know tax implications also in india
we are trading company in india & our goods are manufactured in japan, one of our client located at sri lanka, he wants goods at sri lanka & payment received in india & invoice raised in india but goods are delivered from japan to sri lanka. can we treated as sales in india & PLZ Do let me know tax implications also in india
07 September 2015
What is the residential status of your subsidiary company in India?
Assuming it is resident company, the said transaction of sales is taxable in India.
For VAT, the position is different.
Assuming it is resident company, the said transaction of sales is taxable in India.
For VAT, the position is different.
07 September 2015
yes, it is resident company
plz do let me know tax implications also
plz do let me know tax implications also
07 September 2015
how we dealt with it. because goods are not with us. our holding company located at japan will transfer the goods to sri lanka
07 September 2015
Since you say, it is a resident company, the income arising out of this transaction is taxable in India.
You can keep the proof of the transaction about the delivery of goods. That is sufficient.
INR is received by subsidiary company. So proof of payment received is with you.
(My query is...if holding company is in Japan, why can't your subsidiary be NON resident since the management and control of the company is from outside India
You can keep the proof of the transaction about the delivery of goods. That is sufficient.
INR is received by subsidiary company. So proof of payment received is with you.
(My query is...if holding company is in Japan, why can't your subsidiary be NON resident since the management and control of the company is from outside India
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07 September 2015
though our director are located outside india but we have appointed director in india though he is hired on contractual basis
07 September 2015
i dnt understnd ur query, what does it mean. plz let me know tax implcations also
07 September 2015
ok ok, you have resident director. So yours is a RESIDENT company.
As I said, income tax is applicable on the above transaction. What else you want to know, please
As I said, income tax is applicable on the above transaction. What else you want to know, please
07 September 2015
what is vat implication, as you know our mrp is set for india after custom clearance of goods in india , though i said goods are not india so no custom paid in india, how we set MRP & goods movement from japan to sri lanka
07 September 2015
Please check the document that the Japan Company is preparing. If it is invoiced to Indian Company but delivery is in Srilanka you might have to treat it as import and export. Kindly consult your Auditor before doing anything, since VAT is local tax and may depend upon state to state
07 September 2015
Thank you Praveen.
Kanwal : Which state you are from?
Kanwal : Which state you are from?
07 September 2015
from delhi, our auditor are charging to mch fees for this. so please advise how we treat import & export
07 September 2015
Goods are not entering the jurisdiction of Delhi.Even if holding company bills subsidiary company, the sales is outside the purview of VAT.
Setting MRP for Sri Lanka is your company choice.
Setting MRP for Sri Lanka is your company choice.
07 September 2015
plz advice sales- inida or japan india. what documents are required for these from japan side
07 September 2015
Hi,
Please check the document with which the goods are moving from Japan, without that you will not be able to understand.
Please check the document with which the goods are moving from Japan, without that you will not be able to understand.
08 September 2015
Let the holding company make the regular and routine BILL/INVOICE. This is very common transaction, in the regular course of business.
The Purchase Order raised by the Subsidiary Company, stating that the goods are to be delivered at Sri Lanka and duly accepted by the Holding Company is the first hand proof. In the second instance, let the delivery challan of Holding Company be kept on record of subsidiary company.
The Purchase Order raised by the Subsidiary Company, stating that the goods are to be delivered at Sri Lanka and duly accepted by the Holding Company is the first hand proof. In the second instance, let the delivery challan of Holding Company be kept on record of subsidiary company.
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