Annual Compliances for Foreign Company In India:
Foreign subsidiary companies are mandatorily required to maintain compliance as per Income Tax Act, Companies Act, transfer pricing guidelines and FEMA guidelines. Hence, maintaining compliance for a foreign subsidiary company would includes filing of income tax return with the Income Tax Department, annual return with the Ministry of Corporate Affairs and other filings with authorities like Reserve Bank of India or Securities & Exchange Board of India (SEBI). Finally, like all companies, foreign subsidiaries would also have to comply with other Indian tax regulations like TDS regulations, GST regulations, ESI regulations and others.
The compliance requirement for a foreign subsidiary company would vary based on the industry, state of incorporation, number of employees and sales turnover.
Annual filing of the financial statement
Filing Form FC-3:
It is to be filed with relevant ROC in India, giving details of the places of business together with the financial records of the company.
Filing Form FC-4:
The India-based subsidiary company must file the annual return in Form FC-4 within Sixty days from the end of its financial year
Income Tax Return Filing:
Due Date: 30th September
Income tax return of a company must be filed irrespective of income, profit or loss.
Form no. ITR-7
Applicable Tax rate on Foreign :
For Domestic Company:
Brief About Filing GST Returns:
In case your proprietorship business have GST registration, filing of GST would be mandatory. However due date of filing of different forms will depend upon scheme that you have opted as per your turnover.
Filing of GSTR-1
Due date of Filing: 10th of every following month however for turnover upto 1.5 crore, ,may opt for quarterly filing
Filing of GSTR-2
Due date of Filing: 15th of every following month
Filing of GSTR-3
Due date of Filing: 20th of every following month
Brief About Filing TDS Returns:
TDS return must be filed by all entities required to deduct tax at source and having TAN registration
• Filing of TDS Returns: Quarterly
• Due Date of Filing TDS Returns:
Q1: 31st july
Q2: 31st october
Q3: 31st January
Q4: 31st May
Pre-requisites For Annual Compliance Fulfillment:
• Maintain Proper Books of Accounts.
• Prepare and File Balance Sheet.
Implications on Business:
Managing the day to day operations of your business along with complying the applicable laws can be little taxing for any entrepreneur. Often entrepreneurs get overwhelmed by the number of compliances and in absence of professional guidance end up paying interest and penalties. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.
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