Foreign corporates having Liaison Office to file annual statementNew rules of the game |
Key highlights
- Statement to be filed for each financial year
- Details on all receipts, income and expenses of the non residents in addition to LO‟s details
- Details of purchase and sales of materials from/to Indian parties
- Details of services „provided to‟ or „received from‟ Indian parties
- Details of products and services along with nature of activities of top 5 parties with whom LO has done liaisoning activity in India
- Details of employees drawing salary of INR 50,000 or above per month
- Details of presence of group entities in any form in India
- Details on agents/distributors in India
Issues Foreseen
- Procedure for online filing of Form no. 49C awaited
- Statement to be filed for each FY
- LOs and the non-residents to ensure a robust information gathering system for collation of high level information
- Authorised signatory to be identified and digital signature for such signatory to be obtained
- Reassessing the activities carried out by the LOs and non-residents for analysing any risk that may create a Permanent Establishment (PE) in India
- Maintenance of documents supporting the activities of the LOs
Foreign corporates having Liaison Office to file annual statement
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