Computation of income tax

[madhavvan n]

Issues in remittance made abroad In Sr. No 13 of Form No 15CA in case remittance is made for supply of articles / plant and machinery etc if the receipient has permanent establishment in India through which beneficiary is directly or indirectly carrying on such activity of supply of articles or things. Query : if parent co is in USA / germany and it has world wide subsidiaries including India where the plant is situated does that mean that the parent company has permanent establishment in India Query how does one compute the income comprised in such remittance Verification : this is required to be done by the person authorized to sign return which is managing director, does that mean that all verifications have to be only signed by MD or director not by cfo / accountant What is the procedure after the Form No 15CA is filled up and uploaded to whom should printout be submitted and how the remittance is to be made Please give your views and thoughts

AI Summary

Clarification on Income Tax for Foreign Remittances: Permanent Establishment and Form No 15CA Signing Under Section 140. A query was raised regarding the computation of income tax for remittances made abroad, specifically concerning whether a parent company in the USA or Germany with subsidiaries in India constitutes a permanent establishment in India. The inquiry also sought clarification on the verification process for Form No 15CA, questioning if only the managing director or director can sign, rather than a CFO or accountant. The response advised consulting the relevant Double Taxation Avoidance Agreement (DTAA) for the definition of a permanent establishment and clarified that Section 140 of the Income Tax Act specifies who can sign the return.