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Income tax, GST, TDS, transfer pricing, treaty opinions, remittance tax compliance and expat tax for the branch office of a foreign company.
150+ Regular Clients · Chartered Accountants and Company Secretaries · Since 2016
A branch office in India is taxed as a foreign company, at 35 percent plus surcharge and cess, on profits attributable to its Indian business. It must deduct TDS, pay advance tax, file a return, register for GST, and treat its head office as a distinct person under GST. AU Corporate, a New Delhi firm of Chartered Accountants, prepares and files each of these and represents the branch office in disputes.
Written and reviewed by Abhishek Jaiin, Chartered Accountant (ICAI Membership No. 544646) · Last reviewed: 9 October 2026
A branch office pays more tax than a subsidiary and has its own rules on head office expenses and GST — see the Branch Office Registration guide for how the PE tax position fits the wider structure. Mistakes fall on the foreign company directly.
AU Corporate prepares tax workings directly from the books, so the return, audit report and transfer pricing report agree.
The tax areas a branch office deals with most often.
Computation of Indian profits, the return and the tax audit report.
Estimate and payment in each instalment.
Deduction, deposit and quarterly returns.
Registration, returns and input credit, with analysis of head office supplies.
Form 3CEB and documentation for group dealings.
Forms 15CA and 15CB and treaty rates for each remittance.
Residence, salary tax, treaty relief and returns.
Representation before tax and GST authorities and tribunals.
Treaty opinions and advance rulings for certainty before you act.
A branch office pays tax as a foreign company, at a higher rate than a domestic subsidiary.
| Taxable Income | Base Tax | Surcharge | Cess | Effective Rate |
|---|---|---|---|---|
| Up to INR 1 crore | 35% | None | 4% | 36.4% |
| INR 1 crore to 10 crore | 35% | 2% | 4% | 37.128% |
| Above INR 10 crore | 35% | 5% | 4% | 38.22% |
Rates apply under the Income-tax Act, 2025 and can change in each Budget, so we confirm them for your year. Treaty rates may apply to certain income.
Five items to begin.
The branch office's accounts and the parent's latest accounts.
PAN, TAN, GST and past returns.
Agreements for services, loans or cost sharing with the head office.
Passport, visa and salary details for each expat.
Copies of any tax or GST notices received.
Reasonable fees, confirmed in writing before we start.
Not included: government fees and tax payments, and representation in tax disputes, which is quoted separately.
Your branch office accounts, tax returns, RBI filings and ROC forms must agree with each other. The same team handles each of them.
Straight answers to the questions foreign finance teams ask most about a branch office in India.
Written and reviewed by Abhishek Jaiin, Chartered Accountant (ICAI Membership No. 544646) · Last reviewed: 9 October 2026
This is general guidance based on Indian law and practice as at the date above. It is not advice for your specific case, and rules can change.
Tell us about your branch office's turnover, head office dealings and any notices received, and our team will confirm the filings and representation you need.