We are paying Royalty to Foreign Company after deducting TDS @ 20%. In this reg. my querry is weather they have to pay Income Tax as per IT Act. in India or not. They dont have any braches in india.
1 Replies
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 22 August 2011
Why would you pay income tax as this is not Indian Company's Income. As regards foreign company's Income , TDS has already been deducted by you and nothing further is required from your end.
However Foreign Company can do the following things:
- Obtain PAN and furnish the same to you so that Indian Company can revise its TDS return .
- Foreign Company can file the return of income and claim refund for the same.
Anuj
+91-9810106211
femaquery @ gmail.com
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