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.

AI Summary

Non-resident company received design fee in India: Must it file tax return? Key queries under Section 195. A non-resident company received a design fee (royalty) from an Indian company in 2013-14, with tax deducted at source under section 195. The company lacks a permanent establishment or agent in India. The queries include whether the non-resident must file an income tax return in India, the applicable section and ITR form, the applicability of Section 44AB if receipts exceed Rs. 1 crore, the necessity of preparing books of accounts for tax audit, claimable expenses against Indian income, and who can sign the return with a digital signature. The forum reply asks if the issue was clarified.