Liaison Office (LO)/Branch Office (BO) in India by Foreign Entities – Reporting to Income Tax Authorities.

Reporting obligations for liaison and branch offices: AACs with audited accounts must be furnished to tax authorities and endorsed on renewal.

Liaison and branch offices of foreign entities must furnish Annual Activity Certificates to the Director General of Income Tax (International Taxation) accompanied by audited financial statements, including a receipt and payment account. On renewal of LO permissions, Authorised Dealer Category I banks should endorse a copy of each renewal to the DGIT (International Taxation). Authorised Dealer Category I banks are responsible for notifying their constituents and ensuring compliance with these reporting requirements, which are issued under foreign exchange regulatory powers without prejudice to other statutory permissions.