Applicability of Income tax, Income Tax

[SANJIV KOTHARI]

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 ??

 

Posts / Replies

[manoj kumar]

Sir,

The applicability or non apllicabiltiy of Income tax in that country depends upon the Tax incidence mechanism of that country.

In india,Income Tax gets attracted on following incomes (for Resident):

1.Any income received or deemed to be received in india by assesse or on behalf of such assessee during the year.

2.Any income which acrrue/arise or deemed to be accrue/arise in india during the year.

3.Accrues or arises outside india during the year.

Conclusion -

Applicabilty in India- As company is indian company(resident),so Indian income Tax is applicable on the income arising outside india.

Outside India -Depends on the Income Tax Law of that country