Clause 100 - Tax on branch profits - DIRECT TAXES CODE BILL, 2009

PART - C

BRANCH PROFITS TAX

CHAPTER - VII

CHARGE OF BRANCH  PROFITS TAX

Tax on branch profits

100. (1) Subject to the provisions of this Code, every foreign company shall be liable to branch profits tax, at the rate specified in Paragraph C of The Second Schedule, on its branch profits.

(2) The branch profits referred to in sub-section (1) shall be the total income for the financial year as reduced by the amount of income tax thereon.

(3) The liability to branch profits tax shall be discharged by payment of pre-paid taxes in accordance with the provisions of this Code as if the branch profits tax was income-tax.

(4) Without prejudice to the foregoing and subject to the provisions of this Code, every foreign company may be charged in respect of its liability to branch profits tax referred to in sub-section (1).

(5) The branch profits tax charged under the foregoing provisions shall be collected after allowing credit for pre-paid taxes, if any, in accordance with the provisions of this Code.