Dear
If an Indian Company undertakes turnkry project outside india which involve supply, erection & commissioning outside india and duration of project is 2-3 years. Operation outside india is monitored through site office in that country.India has no DTAA that country.
Would there be any applicability of income tax in the country where projecte is undertaken ??
Indian Company Faces Income Tax on Overseas Turnkey Project; Local Laws Govern Foreign Tax Obligations An individual inquired about the applicability of income tax for an Indian company undertaking a turnkey project outside India, with operations managed through a site office in a country lacking a Double Taxation Avoidance Agreement (DTAA) with India. The response highlighted that the tax applicability in the foreign country depends on its specific tax laws. In India, as the company is resident, income tax applies to income arising outside India. The applicability of tax in the foreign country is contingent upon its local tax regulations. (AI Summary)
TaxTMI 
TaxTMI 
