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Foreign corporates having Liaison Office to file annual statement

New 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