Rajbeer (senior accountant) (86 Points)
05 September 20151. A company having Head office in USA. A company opened a branch in India. A company in USA receives Work from their client in USA. But some work of the client it provides in Indian branch. Is there any taxability occurs in India.
2. H.O transfer some amount in India for the expenses of the branch is there any taxability occur for amount transfer.
Rashi Bajaj
(CA)
(752 Points)
Replied 05 September 2015
The Indian Branch is a permanent establishment of the US company. Any income arising from activities in this PE is taxable in India. Expenses paid for can be respectively claimed against the incme.
remittance from US towards expenses will not be income, only in nature of advances. only income by way of rendering service from branch is taxable.
Rajbeer
(senior accountant)
(86 Points)
Replied 20 September 2015
CAclubindia
