domestic company

[Guest]

Sec 2(22A) specifies that -----“domestic company” means an Indian company, or any other company
which, in respect of its income liable to tax under this Act, has
made the prescribed arrangements for the declaration and payment,
within India, of the dividends (including dividends on preference
shares) payable out of such income ;]

Indian co--registered in india.

my ques is if a co is registered o/s india & earning income in india by providing consultancy services in india & that company declares dividend & if there are few shareholders who are indian then whether it would be called a domestic company b/c the above section covers that (highlighted).

they are remitting the money earned in india by filing form 15CB &  15CA

[DR.MARIAPPAN GOVINDARAJAN]

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

AI Summary

Domestic company definition: whether a foreign-registered firm paying dividends to Indian shareholders qualifies under domestic-company rules. Whether an entity qualifies as a domestic company depends on Indian incorporation or having made the prescribed arrangements for declaration and payment within India of dividends payable out of income liable to tax. The core question is if a foreign-registered company earning income in India, declaring dividends to Indian shareholders and remitting proceeds after filing required remittance paperwork, is treated as a domestic company for tax purposes.