Re: [aurangabad_ca] Foreign Subsidiary Company
If We (an Indian Company) want to form a subsidiary company (say in U.S). What would be the tax effect in India (on Indian Holding & foreign subsidiary company)
If Indian company and US subsidiary company are two different legal entities...the Indian company will have to pay tax in India as per Indian laws and the Subsidiary company incorporated in the US will pay taxes in the US as per the US laws...
Further if after few years, the foreign subsidiary company is merged with the Indian Holding company, what would be the effect?
If the foreign subsidiary is merged with the Indian holding company then legally they are the same entities only the place of operation is different..The foreign co would become a branch office or so of the indian company..Then the accounts will have to be consolidated and taxes paid on consolidated profits in India..Also in the foreign country taxes on the foreign office will have to be paid as per applicable law since it would be treated as a separate establishment in the foreign country..Credit for tax paid in the foreign country can be claimed in Indian tax return subject to the prevailing DTAA between the two countries...
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AURANGABAD_CA is a Yahoo Group for the benefit of CA and other professional. It is especially meant for written discussion within group members and circulate the information among its members. The mail may contain such research/advice/opinion/information/fact provided by any member or moderator and every contain of the mail or information of yahoo is always subject to the Accuracy and of the description of facts.
The Aurangabad_CA , its moderator/owner do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant fact(s).
Considering all above facts m the transaction based on above mail may not complete without confirming proper statue/authority/person. Therefore any action/transaction taken on basis of this mail do not imply the accuracy or value . Further this Group's Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Yahoo Group.
For Seeking any Clarification you may mail only to Group Moderator on
girishkulk@gmail.com
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