Home |Business | Is a Liaison Office (LO) in India of Foreign corporation subject to TP Provisions?

Is a Liaison Office (LO) in India of Foreign corporation subject to TP Provisions?

Answer Notify Me - 1 Notifying - 2



Suresh Suresh
Answered on February 13,2020

The residential status of LO in India of an enterprise outside India is that of a “non-resident” for Indian tax purposes. Since the LO is not taxable in India as they do not indulge in income generating activities, transfer pricing provisions are not applicable for LO. However, if a LO constitutes a PE in India, it will be subject to tax in India and will be subject to an appropriate attribution of profit generated by the foreign enterprise from its operations in India.

Clap Clap 3
Share Share Answer Share Share
Views 101 views
tesz.in
Hey , can you help?
Answer this question
Guide

How to set up a business in India from scratch?

Setting up a Business in India involves the following steps Choosing the type of business Business Registration Process Central and State level Approvals / Compliances Wi..
  Click here to get a detailed guide

    • Related Questions