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Social Security Benefits |
Every establishment in India , employing 20 or more persons is required to register with the social security authorities unless they are an exempt establishment . For Indian passport holders , social security contribution is optional for employees if their salary exceeds INR 6,500 per month . |
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International Worker |
International worker may get exemption from social security regulations , if there is SSA with the country , and the worker is contributing in his / her own country and for defined terms and conditions in relevant SSA . |
International worker may get exemption of social security regulations if there is SSA with the country , and the worker is contributing in his / her own country and for defined terms and conditions in relevant SSA . |
In case of LLP the tax on income are as follows : |
Benefits of DTAA : |
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Business income : 30 % plus surcharge and education cess |
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Lower Withholding Taxes ( Tax Deduction at Source ) |
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Alternate Minimum Tax : The concept to AMT is similar to |
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Complete Exemption of Income from Taxes |
the Minimum Alternate Tax ( MAT ), as applicable to the |
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Underlying Tax Credit |
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Companies but since there is no concept of book profits in case of LLP , the LLP ’ s will be liable to pay AMT on their adjusted total income ( equivalent to adjusted taxable income ). Similar to Company , LLP paying AMT can claim |
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Tax Sparing Credits
DTAA provides lower rate or exemption for taxes on capital gains ( gains made by selling the business unit )
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its credit for 10 assessment years . But as opposed to |
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It also provides taxability of business profits if the company |
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Company , LLP will not be liable to pay AMT on those |
has permanent establishment in India . A building site or |
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income , which are exempt under provisions of Income Tax |
construction , installation or assembly project constitutes a |
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like long term capital gain under section 10 ( 38 ) and |
permanent establishment only if it continues for a period of |
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income from dividend under section 10 ( 34 ) etc |
more than 183 days in any fiscal year . |
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There is no dividend distribution tax on LLP ’ s . |
India also has free trade agreements providing for concessional |
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Royalty Rates
The rates of royalty country wise can be seen from the following link-
( http :// law . incometaxindia . gov . in / DIT / File _ opener . aspx ? fn = htt p :// law . incometaxindia . gov . in / Directtaxlaws / dtrr2005 / R10 . htm
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import duties . The details of FTA ’ s and other agreements can be seen from the following link- ( http :// commerce . nic . in / trade / international _ ta . asp ? id = 2 & trade
= i )
Q . 39 What are the reporting requirements related to taxes ?
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Tax liability in India can either be discharged through the |
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Q . 38 Does India has double taxation avoidance agreements and free trade agreements ?
India has Double Taxation Avoidance Agreements signed with various countries ; the list of countries can be seen from the following link-
( http :// law . incometaxindia . gov . in / DIT / intDtaa . aspx ).
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advance tax mechanism or the tax withholding mechanism .
Under the advance tax mechanism , one estimates the entire year ’ s tax liability and deposits through three annual installments , i . e . September 30 ( 30 %), December 15 ( 30 %) and
March 15 ( 40 %). An LO is not required to pay corporation or withholding tax as there is no income .
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Q . 40 What are the various types of Visas ? |
supporting documents . ( http :// indianvisaonline . gov . in / visa /). |
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Government of India issues the following visas : Business Visa , |
Preferable visas from an industry point of view are business |
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Conference Visa , Diplomatic Visa , Employment Visa , |
visa , employment visa and conference visa . |
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Emergency Visa , Entry Visa , Journalist Visa , Medical Visa , |
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FAQs relating to work-related visas ( business / employment ) |
Missionaries Visa , and permit to re-enter within 2 months , |
issued by India can be seen from the following link- |
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Research Visa , Student Visa , Tourist Visa , and Transit Visa . |
( http :// mha . nic . in / pdfs / work _ visa _ faq . pdf ). |
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Please follow the link for details on Visa Provision and |
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FAQ relating to conference visa can be seen from the |