Feb. 24 – Foreign companies doing business in India will be levied tax on dividends, royalty and technical fees.
According to India’s Income Tax Department, income-tax payable shall be aggregate of:
- The amount of income-tax calculated on the amount of income by way of dividends 20a[other than dividends referred to in section 115-O], if any, included in the total income, at the rate of twenty percent
- The amount of income-tax calculated on the amount of income by way of interest referred to in sub-clause (ii), if any, included in the total income, at the rate of twenty per cent ;
- The amount of income-tax calculated on the income in respect of units referred to in sub-clause (iii), if any, included in the total income, at the rate of twenty per cent ; and
- The amount of income-tax with which he or it would have been chargeable had his or its total income been reduced by the amount of income referred to in sub-clause (i), sub-clause (ii) and sub-clause (iii) ;
- The amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of thirty percent if such royalty is received in pursuance of an agreement made on or before the 31st day of May, 1997 and twenty percent where such royalty is received in pursuance of an agreement made after the 31st day of May 23, 1997
For more professional advice on tax issues in China email Dezan Shira & Associates at mumbai@dezshira.com.
