Dhruv Dua & Co. advises on the Indian tax consequences of cross-border business: which country taxes the income, what tax must be withheld on payments abroad, whether a foreign company has a taxable presence in India, and how transactions with group companies are priced and documented.
What does international tax and transfer pricing cover?
- Treaty analysis. Application of India's tax treaties to royalties, fees for technical services, interest, dividends and capital gains.
- Withholding tax on foreign payments. Rate determination, remittance certificates and reporting of payments to non-residents in Form 144.
- Non-resident filings. Tax residency documentation and Form 41 (earlier Form 10F) for non-residents claiming treaty benefits.
- Permanent establishment review. Assessment of whether a foreign company's activities, people or projects in India create a taxable presence.
- Transfer pricing. Functional analysis, benchmarking, documentation and the accountant's report on international transactions.
- Individuals. Residential status, expatriate taxation and disclosure of foreign assets.
How does the work run?
- Understand the transaction and the contracts.
- Identify the treaty and domestic law position.
- Quantify the tax and the withholding.
- Document the position.
- Handle the filings and any later enquiry.
Who is this for?
- Foreign companies earning income from India
- Indian companies paying overseas vendors and group entities
- Indian subsidiaries with related-party transactions
Frequently asked questions
Is tax deducted on payments to a foreign company?
Often yes. Payments to a non-resident that are taxable in India are subject to tax deduction at source. The rate depends on the nature of the payment and on the tax treaty between India and the recipient's country.
What is transfer pricing documentation?
It is the record that shows transactions between group companies are priced as they would be between independent parties. It includes a functional analysis, a benchmarking study and an accountant's report filed with the tax department.
What is Form 41?
Form 41 is the form in which a non-resident furnishes prescribed information to claim tax treaty benefits in India. It replaces Form 10F under the earlier rules.