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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 |