03 February 2016
Dear all, can any anybody please clarify that what is tax rate applicable for subsidiary company whose holding company is foreign entity? And also what is the tax rate if the foreign entity has branch in india? Does this subsidiary co. and branch means the same?
04 February 2016
Subsidiary of a company registered as per the Companies Act, 2013 or any erstwhile is a domestic company and the income of the same is taxable normally at 30% (i.e. same as other Indian Companies).
If the foreign entity is carrying any business in India through a PE, then relevant DTAA has to be referred (normally article 7 of the DTAA).
Subsidiary company registered in India and a branch though registered with MCA as branch or liaisoning office are not the one and the same.
CAclubindia
