« on: July 04, 2012, 10:41:14 AM »
One Foreign Based company has opened an office in India, necessary approval from RBI and ROC obtained, PAN card also obtained, the company has 3-4 employees in India. The salaries and other expenses are sent from HO. The company is doing supplies of various machines and equipments from its Head Office in Foreign Country to India and also doing installation work. The local representatives are doing follow up work. The payments are directly remitted to Foreign Country. The total business during 2011-12 is approx. 20 Crores. What percentage of profit will be calculated by tax department attributable to operations in India. There are expenses incurred by company for its offices in India.
CA. Rajeev Jain