India's deadline for income tax returns is coming up quickly.
Companies who earned certain Indian-sourced income during India's 2016-17 financial year (i.e., April 1, 2016 to March 31, 2017) must file an Indian income tax return by September 30, 2017 if they are not subject to Indian transfer pricing compliance. However, if a company is subject to Indian transfer pricing compliance, they must submit their Indian income tax returns by November 30, 2017. These Indian tax filing obligations apply even if the company has discharged their tax liability by paying Indian withholding tax and even if the company does not have a permanent establishment in India.
Foreign companies that have completed transactions with their associated enterprises in India must also file an Accountant's report (Form 3CEB) for the 2016-17 tax year by November 30, 2017.
A company that is not a resident of India must file an Indian tax return where the company earns Indian-sourced income on account of royalty, interest, and fees for technical services. Non-compliance may result in penalties.
If you have a client who earns Indian-sourced income and requires assistance in determining their Indian tax filing obligations, please contact a member of the ICT group.
For more information, contact your KPMG adviser.