Tds from payment from import of raw material

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2015 ABC Ltd is a USA based company having subsidiary in India i.e. B co. Pvt Ltd, also having multiple company in asia, europe and USA. One of the china based group co. i.e. XYZ co. sells material to one indian co. PQR pvt Ltd. in chennai.

Now Whether in this case having subsidiary in india will counts as business connection or PE in india.

Also the China co. will not provide TRC/10F/PE declaration.

Whether the payment for Import will be taxable in india.

If taxable then whether TDS is to be deducted. also how to determine tax amount.

if yes @ what rate & on which amount and under which section it is to be deducted & deposited.

Also how to issue form 15CB in this case.

Rajesh Kumar

Rajesh Kumar (Expert)
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14 September 2015 Subsidiary company has separate entity, it cannot be treated as PE. However, it is an Associated Enterprise and Transfer Pricing provisions may be applicable.
Payment for import does not attract any TDS and it is payment for buying goods. Nevertheless procedure of payment to non-residents (Form 15CB) is required to be followed.