Tax on foreign compnay

[MITSUI PRIME ADVANCED]

Dear sir,

I come to know weither our copany in india Register company act 1956 but 75% share held with foreign company, japan

please tell me this company treated under income tax as s foreign company tax will be 40% (50%) ?? or not

Regards

Arjun Sachdeva

 

AI Summary

Indian Company with 75% Foreign Ownership Not Taxed as Foreign Under Income Tax Act, Section 2(23A) A query was raised regarding the tax treatment of a company registered in India under the Companies Act, 1956, with 75% of its shares held by a foreign company from Japan. The question was whether it would be taxed as a foreign company at a rate of 40% or 50%. The response clarified that according to Section 2(23A) of the Income Tax Act, 1961, a foreign company is defined as one not registered in India. Therefore, the company in question would not be treated as a foreign company for tax purposes.