TAX IMPLICATION

[arindam_647]

MY CLIENT IS A DIRECT AGENT OF A FOREIGN TOURS AND TRAVEL AGENCY AND SELLING THEIR PRODUCT IN INDIA WITHOUT MARKUP AND COLLECT THE PAYMENT IN INDIA BY INR AND REMIT TO THAT FOREIGN COMPANY FORTNIGHTLY..
       
        1. WHAT IS THE TAX IMPLICATION OF THE ABOVE IN INDIA
        2.  PLS SEND THE SAMPLE AGREEMENT COPY TO BE MADE BY INDIAN AGENT AND THAT        FOREIGN COMPANY.

[srinivasan]

you have not indicated , how your cllient gets income ? unless that is pecified it may not be possible to draft any agreement. Assuming your client gets commision from the foreign principal, the same is to be taxed in India ( net of expenses)

[mitalidas]

To answer your question correctly we would require a few more details. Now there are many ways to remit money. Firstly, how does the agent himself collect the money from his clients and how much does this amount to? This I ask because the turnover as well as the income also make an impact on the taxes. Secondly, how does the agent remit the money to his foreign clients. Thirdly, what is the currency used for all these transactions? Give us all the details and we are sure we can answer you better.

Regards
Mitali Das

[vsaiyar]

I THINK QUERRIEST IS CONCERNED ABOUT THE FOREIGN PARTY AS TO THE TAX IMPLICATION.  WHETHER THE INCOME PERTAINING TO THE BUSINESS OBTAINED BY THE FOREIGN TRAVEL AGENT FROM INDIA THROUGH THE AGENT IS TAXABLE IN  INDIA AND WHETHER THE INDIAN COUNTERPART WILL BE HELD AS AGENT FOR PURPOSES OF ASSESSMENT.  FURTHER THE FOREIGN TRAVEL AGENT WHETHER WILL BE TREATED AS HAVING A PERMANENT ESTABLISHMENT IN INDIA?  IF THE QUERRIEST CONFIRM THIS IS WHAT HE HAS IN MIND THEN IT CAN BE DEALT.

[sanjeev1325]

Dear All,

Iw ould like to Know About  MAT

In Last To Assesment Year we do not carry forward any business loss but we have the loss in the AY 2012-13 we made Profit of Abt 80L And In Last 2 Years Depreciaition Loss 35.00L And 45L But No Business Loss, Can these Losses Adjusted towards our Book Profit For Current Year or We Need To Pay MAT ?
Please Reply

[camanojgupta]

u will have to pay MAT because lower of BL or UD is allowed to be deducted  further Exp (b) to section 115JB(2)(iii) clarifies that if anyone of BL or UD is nil then nothingt will b deducted
CA MANOJ GUPTA
09828510543

[pawansingla]

Figures has to be seen from the angle of P & L a/c and not as per the normal tax calculation.It is business loss as per books or books depreciation whichever is lower.Kindly mail your p& l a/c for last 2,3 years on singlapavan@gmail.com or call me on 9825829075. I will further clarrify the matter.
2009] 27 SOT 152 (MUM.)

IN THE ITAT MUMBAI BENCH 'A'

Amline Textiles (P.) Ltd.*

v.

Income-tax Officer, Ward 3(1)-1, Mumbai
read this.ou will get more clarity and also the benfit.