Taxation on foreign company owned by resident indian

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Ashit Malhotra (Querist)
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09 November 2017 If a company/entity in USA is 100% owned by resident Indians .is there a tax liability of the company/entity in India

Amol S Joglekar

Amol S Joglekar (Expert)
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09 November 2017 yes.
The taxability is the function of residential status of the company. AND
residential status of the company is the one as that of the majority of the controlling management's residential status.
In short....the answer is yes, it is taxable in India since the company is resident and ordinarily resident in India

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 November 2017 Yes it's taxable in both the countries but relief can be claimed for the tax paid out side India.
http://www.livemint.com/Politics/oZybP5TfOG1meFoob5Jf7I/Tax-residency-tweak-may-hit-Indian-firms-with-overseas-opera.html

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Ashit Malhotra

Ashit Malhotra (Querist)
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10 November 2017 According to https://flagtheory.com/companies-incorporated-outside-india/ it is not applicable to overseas entity with turnover less than 50 CR.Can you confirm.

Ashit Malhotra

Ashit Malhotra (Querist)
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10 November 2017 According to https://flagtheory.com/companies-incorporated-outside-india/ it is not applicable to overseas entity with turnover less than 50 CR.Can you confirm.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 November 2017 Yes agreed with you.