Response to this Question

    Generally, this is applicable to capital gains tax, dividend tax and tax on business income etc. The taxability in parent jurisdiction is governed by taxation laws as prevailing there. However, this is also dependent upon the provisions of the Double Tax Avoidance Agreement (DTAA) of the parent company jurisdiction with India, if any. principally, India has good treaties with most countries and there is no loss of revenue to foreign companies since the treaties are designed on the OECD model and favor single point of taxation. It is advisable that management obtains expert advise narrating facts of the case.

Date : 25-Nov-2019 

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