liason office is liable to file income tax return in india?

kalyan (Finance Manager ) (91 Points)

10 September 2009  

 if under India's regulations, Liason Ofiice need to file for their own tax return ie they need to prepare their own set of accounts. Reason being, if Liason Office in India need to file for tax in India or need to highlight the same in other tax agent books so that they would exclude India's expenses in the tax computation for other office out of india?

My question  is  :

1. A liason office in  india with no income   with remittances of funds from  outside india and meeting the regular expenses   is liable to    pay  file the income tax return as per  income tax act ?

2. Also   if liable  to  file  return in india then  the same expenses or income need to  be  ignored   in other  country 's  tax compliances ?

Kindly reply the same as soon as possible

Regards,

Kalyan