Wholly Owned Subsidiary

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Wholly Owned Subsidiary
Query (Issue) Started By: - KR Ramesh Dated:- 22-7-2011 Last Reply Date:- 28-7-2011 Income Tax
Got 3 Replies
Income Tax
Hi, I have a query on the Corporate Tax R .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ate of a Wholly Owned Subsidiary of a Foreign Company. A company is registered in India as a Private Limited Company, 100% equity is being held by the foreign entitiy. Query , For Income Tax Purpos .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e 1) would this be treated as a foreign company and taxed @40% 2) or it would be treated as a domestic company and taxed @ 30% Please advice the reasons for the answer quoting the reference of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... constitution if any Many thanks Regards Ramesh Reply By MOHAN S: The Reply: Dear Mr.Ramesh, Kindly read the definition of a "Foreign Company" and "domestic company" under Income Tax Act 1961. Th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e answer is clearly available there. Reply By Bakul Gandhi: The Reply: Generally, a subsidiary company is a legal entity distinct from the holding company and will be taxed at 30% as Domestic Compan .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y. However, if the subsidiary company is construed as PE-Permanent Establishment- of holding company in terms of relevant Double Taxation Avoidance Agreement, it will be taxed at 40%. whether subsi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... idiary is PE or not - refer to P.No 8 of 1995 223 ITR 416 (AAR) Reply By KR Ramesh: The Reply: Dear Mr. Gandhi, Many thanks for giving the direction, Indeed it is highly appreciated. Kind Regards .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Ramesh
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X