prasad (manager) (171 Points)
19 August 2011Dear All,
I would like to know what the procedure is to start administration & development center for software pvt. ltd. company in other states. Our company is registered in Andhra Pradesh whereas we would like to start the administration & development center in Karnataka and only development centers in Tamilnadu and Delhi. We want to know whether these centers should be considered as branch offices. If so, what is the formal procedure to start them.
Sai
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 19 August 2011
The choice is to start a new entity or branch . I would prefer a branch.
Nothing much is required, just purchase or hire a space and abide by the local laws like VAT(most probably not applicable) and Central Laws like Service Tax (most probably the Andhra Pradesh entity must have taken centalised registration),TDS(local TAn needs to be applied, if payments are made from branches).
Anuj
prasad
(manager)
(171 Points)
Replied 19 August 2011
Dear Mr.Anuj Sir,
Thanks for your reply. Pls. explain what do you mean 'if payments are made from branches'. I already have TAN with my registered office address (in AP). We've corporate current account with a bank in Bangalore. I believe I can make payments like salaries to my employees, purchase payments regarding the furniture etc. can be done through Bangalore bank and using my registered office TAN number. Kindly correct me if I'm wrong.
with rgds,
Sai
SkDash
(CS (Member) CWA (Final))
(909 Points)
Replied 19 August 2011
good and simple answer from Anuj
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 19 August 2011
Sai,
You can definitely make payments CENTRALLY and also deduct and deposit TDS CENTRALLY.
Do let me know if you need any assistance in Delhi.
Anuj
+91-9810106211
femaquery @ gmail.com
prasad
(manager)
(171 Points)
Replied 19 August 2011
Definitely. Thanks again for your prompt reply.
with rgds,
Sai
CAclubindia
