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Corporate tax returns, advance tax, TDS, GST registration and returns, tax audit, and transfer pricing for transactions with your parent, from one team of Chartered Accountants.
150+ Subsidiaries Incorporated · 150+ Regular Clients · Since 2016
An Indian subsidiary of a foreign company pays income tax at an effective rate of about 25.17 percent under the concessional regime (22 percent tax, 10 percent surcharge and 4 percent cess), deducts and deposits TDS on its payments, registers for and files GST returns, and, if it deals with its parent or group companies, prepares a transfer pricing report showing those dealings are at arm's length. AU Corporate, a New Delhi firm of Chartered Accountants serving foreign parents since 2016, prepares and files all of these, and also represents the subsidiary in tax and GST disputes, refund claims and advance rulings, at reasonable fees.
Written and reviewed by Abhishek Jaiin, Chartered Accountant (ICAI Membership No. 544646) · Last reviewed:
Indian tax has many dates and many forms, and the penalties for a mistake fall on the subsidiary and its directors. Transfer pricing matters most because tax officers examine dealings between the subsidiary and its foreign parent closely.
AU Corporate prepares the tax workings directly from your books, so the return, the audit report and the transfer pricing report all agree. You receive a single calendar and clear summaries your finance team abroad can follow — see our accounting, reporting and audit support for how those books are kept in step.
The tax areas an Indian subsidiary deals with most often.
Computation of taxable income from the audited accounts, return filing and tax payment, with the group's tax position explained clearly.
Estimate of the year's tax and payment in each instalment, so the subsidiary avoids interest for short payment.
Deduction on salaries, vendors, rent and payments abroad, deposit with the government and the quarterly TDS returns.
Registration, monthly or quarterly returns, input credit reconciliation and refund of unused credit on exports of services.
Preparation of the schedules and coordination with the auditor where a tax audit applies to the subsidiary.
Study of transactions with the parent, the pricing method, documentation and the accountant's report filed with the return.
Written opinions on whether payments to the parent, such as dividends, fees, royalties and interest, qualify for tax treaty relief, with the documents needed to claim it.
Withholding tax on dividends, fees, royalties and loan repayments to the parent, the Chartered Accountant's certificate and the declaration the bank needs before each remittance.
Tax residence, tax on salary and allowances, treaty relief and foreign tax credit for employees posted to India, with their income tax returns.
Replies to income tax notices, preparation for scrutiny and representation before the Assessing Officer (AO) and, in transfer pricing cases, the Transfer Pricing Officer (TPO).
Objections to a draft assessment order before the Dispute Resolution Panel, which can direct changes before the final order is passed.
First appeals before the Commissioner of Income Tax (Appeals) and second appeals before the Income Tax Appellate Tribunal (ITAT), with paperwork and arguments prepared by AU.
Replies to GST notices and show cause notices, personal hearings and appeals against GST orders before the appellate authority and the GST Appellate Tribunal.
Refund of unused input tax credit and of tax paid on exports of services, from the application to follow-up with the refund officer.
An application to the Authority for Advance Ruling for a binding answer on a GST question, such as classification, credit or liability, before you act.
Most Indian subsidiaries pay tax under the concessional regime for domestic companies. This is how the effective rate is built up.
| Component | Rate | On INR 100 of Taxable Profit |
|---|---|---|
| Base income tax | 22% | INR 22.00 |
| Surcharge | 10% of the tax | INR 2.20, so tax becomes INR 24.20 |
| Health and education cess | 4% of tax plus surcharge | INR 0.97, so tax becomes INR 25.17 |
| Effective Rate | About 25.17% | INR 25.17 |
The concessional regime applies if the Indian subsidiary chooses it and meets its conditions, which include giving up certain deductions and incentives. Rates, surcharge and cess can change in each Budget, and the Income-tax Act, 2025 applies from 1 April 2026, so we confirm the position for your year. Dividends, royalties and fees paid to the parent are taxed separately.
If AU Corporate keeps your books, we already hold your accounts and need only the other items. If another provider keeps them, we need the first and last items as well.
Only if AU Corporate does not keep your books. Otherwise we already have them.
Service, loan, royalty or purchase agreements with the parent or group companies.
PAN, TAN, GST registration and tax portal access.
Past income tax returns, TDS returns, GST returns, assessment orders and any notices.
Details of payments to vendors, professionals, landlords and employees for TDS. Only if AU Corporate does not keep your books.
We keep the tax calendar running all year, so the annual return is not a scramble.
Check registrations, past returns, notices and open tax positions.
Work out monthly TDS and GST and quarterly advance tax from the books.
Prepare and file returns before each due date.
Prepare the income tax return, tax audit schedules and transfer pricing report.
Flag tax risks and savings in your parent's transactions.
Reasonable fees, confirmed in writing before we start.
Not included: government taxes, interest and penalties, any amount deposited to appeal or to stay a demand, court and tribunal fees, and the tax auditor's own fee. Litigation is quoted for each matter, and matters beyond the ITAT or the GST Appellate Tribunal are quoted separately. Dates and form numbers changed with the Income-tax Act, 2025 and the Income-tax Rules, 2026, which apply from 1 April 2026, so we confirm what applies to your year.
What is due, and when, for an Indian subsidiary with a 1 April to 31 March year. We track every date for you.
| When | What | How AU Helps |
|---|---|---|
| Before each remittance abroad | Withholding tax, accountant's certificate and bank declaration | Calculated, certified and deposited |
| 7th of every month | Deposit of TDS for the previous month | Calculated and deposited |
| Monthly or quarterly | GST returns and tax payment | Prepared and filed |
| 15 June, 15 September, 15 December, 15 March | Advance tax instalments | Estimated and paid |
| Quarterly, after each quarter | TDS returns | Prepared and filed |
| 30 September | Tax audit report, where applicable | Schedules prepared with the auditor |
| 31 October | Transfer pricing accountant's report; income tax return where no transfer pricing applies | Study and report prepared |
| 30 November | Income tax return where transfer pricing applies | Filed with the report |
| Generally 30 days from a draft assessment order | Objections to the Dispute Resolution Panel | Objections prepared and filed |
| Generally 30 days from an assessment order | Appeal to the CIT(A) | Appeal and grounds prepared and filed |
| Generally 60 days from the CIT(A) order | Appeal to the ITAT | Appeal and paper book prepared and filed |
| Generally three months from a GST order | First appeal against a GST order | Appeal prepared with the pre-deposit |
Dates are the usual ones for an Indian subsidiary and can change by notification, so we confirm them for your subsidiary each year.
Tax is only as good as the books behind it. The same team handles your accounts, FEMA filings and secretarial compliance.
Straight answers to the questions foreign finance teams ask most. Can't find yours? Ask us in the form below.
Written and reviewed by Abhishek Jaiin, Chartered Accountant (ICAI Membership No. 544646) · Last reviewed:
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 where your parent company is, the nature of your Indian business and whether you deal with your parent or group companies, and we'll reply with a clear quote.