On 6th February, 2012 the Income Tax authorities have issued a notification laying down the Form in which Annual statement is required to be furnished in respect of a Liaison Office in India. The said statement will have to be in Form 49C which will be applicable from current financial year ending on 31st March, 2012. The newly notified Form seeks voluminous details and therefore has far-reaching implications for Liaison Offices. With the data that the tax department would gather through such annual statements, it is likely that the activities carried on by Liaison Offices in India will come under a lens. It would therefore be advisable for such foreign entities operating Liaison Offices in India to have a close look at the issue of whether a Permanent Establishment (‘PE’) exposure exists for them in India.

We are pleased to attach our Alert on the said matter.SKP Tax Alert – Non-Residents having Local Office in India

Source: SKP Crossborder Consulting Pvt. Ltd.