In India, a withholding tax is levied on services and royalties. This is deducted from the invoice by the Indian business party and paid accordingly.
In order to apply the reduced rate of 10% based on the double taxation agreement between India and Switzerland, Indian customers need the following documents.
• Tax Residency Certificate (TRC) (= extract from cantonal commercial register)
• Non-Permanent Establishment Declaration (No PE Declaration)
• Form 10F: If you are registered accordingly, Form 10F can be submitted online.
Registration process for non-resident companies in India
- Click on the Register option on the e-filing portal: https://www.incometax.gov.in/iec/foportal
- Under the Others category, choose non-residents not having a PAN and not required to have a PAN.
- Enter basic information including name, date of incorporation, tax identification number, status, and country of residence.
- Provide details of the key contact person: name, date of birth, email address and mobile number, which will be verified through a one-time password (OTP). Currently, for updating the profile of a taxpayer, the income tax portal accepts a foreign mobile number but the OTP is not delivered from the portal to the foreign number. In this case, a non-resident will need to provide an Indian mobile number for registration purposes.
- Upload certain documents such as tax residency certificate, address proof, identification proof and any other document as required.
Once the non-resident is registered on the portal, it can file Form 10F electronically without having to obtain a PAN in India. Please note that once the registration is complete, the non-resident must digitally sign the form using a Digital Signature Certificate (DSC). The authorized representative for the non-resident must obtain a DSC in India and digitally sign the form to complete the submission.
If you need any support with this matter, please get in touch with Mr. Vijay Iyer at the Swiss Business Hub India, Mumbai: vijay.iyer@eda.admin.ch
Content Source: https://www.nexdigm.com
