ITR Filing for Non Resident

[CASUNIL BHANSALI]

Background:

A Non Resident Company receiving Design Fee (Royalty) from Indian concern in year 2013-14. The Indian concern has duly deducted TDS u/s 195 on all payment made to such non-resident company. The Non -resident does not have any PE/ Agent in India.

Query:

1. Whether the Non-resident Company is liable to file Income Tax Return as per Indian tax law w.r.t. Income Generated from India.  If Yes, then under which section and which ITR Form is to be filed.

2. Whether the provision of Section 44AB (Tax Audit) is applicable if gross receipt exceeds Rs. 1 Cr

3. If Tax Audit is to be conducted, then whether Books of Accounts and Financial Statement needs to be prepared only for such gross receipts

4. What type of expenses could be claimed against such Indian Income? 

5. Who can sign the Income Tax Return on behalf of such non-resident company as Digital Signature is also required for such Return Filing.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Non-resident tax filing obligations: determine return requirement, audit threshold, allowable deductions and authorised signatory for Indian-source royalties. A non resident company received design fee (royalty) from an Indian payer with tax deducted at source under Section 195 and no permanent establishment in India. The document asks whether the non resident must file an Indian income tax return and which ITR form applies, whether the tax audit provision under Section 44AB applies if gross receipts exceed the threshold, whether books and financial statements must be prepared only for such receipts, what expenses may be claimed, and who may sign and digitally file the return on the company's behalf.