Deduction of head office expenditure: non-residents may claim limited deduction for overseas administrative costs attributable to Indian business profits. Deduction is allowed for head office expenditure incurred outside India and attributable to a non-resident's business or profession in India, limited to specified executive and general administration costs, and subject to a monetary ceiling of five percent applied to adjusted total income or to the average adjusted total income where the adjusted total income is a loss; statutory definitions set out adjusted total income and the averaging method over up to three prior years.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deduction of head office expenditure: non-residents may claim limited deduction for overseas administrative costs attributable to Indian business profits.
Deduction is allowed for head office expenditure incurred outside India and attributable to a non-resident's business or profession in India, limited to specified executive and general administration costs, and subject to a monetary ceiling of five percent applied to adjusted total income or to the average adjusted total income where the adjusted total income is a loss; statutory definitions set out adjusted total income and the averaging method over up to three prior years.
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