TaxTMI 
TaxTMI 
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
Computation of income tax
20 May 2009 
1 Reply 
1635 Views Asked by
Permanent establishment status affects tax treatment of cross-border remittances and requires DTAA-based income attribution before computation.
Permanent establishment status, as defined in the applicable Double Taxation Avoidance Agreement, determines whether a remittance for supply of goods or plant and machinery is attributable to an Indian presence and taxable in India; if so, compute the income element as income attributable to that Indian permanent establishment. Form 15CA must be signed by the person competent to sign the income-tax return, so the authorised return signatory should verify and sign the form, with post-upload submission and remittance mechanics to follow prescribed procedures. (AI Summary)
Permanent establishment status, as defined in the applicable Double Taxation Avoidance Agreement, determines whether a remittance for supply of goods or plant and machinery is attributable to an Indian presence and taxable in India; if so, compute the income element as income attributable to that Indian permanent establishment. Form 15CA must be signed by the person competent to sign the income-tax return, so the authorised return signatory should verify and sign the form, with post-upload submission and remittance mechanics to follow prescribed procedures. (AI Summary)