Tax & Accounting
Kreston SGCO Advisors LLP
Established in 1992, Kreston SGCO prides itself of offering world class consulting services across a wide range of verticals to domestic and international clients.
With the ultimate “truly global consulting firm” vision, Kreston SGCO will be your irreplaceable partner in Mumbai offering innovative and customised solutions best targeted for your individual and business needs.
Kreston SGCO assists expats moving to Mumbai in:
- Direct and Indirect taxation
- Transaction and business advisory
- Audit support services
Tax & Accounting for Expats in Mumbai
As the financial and commercial centre of India and a key global centre for commerce, Mumbai is home to numerous international prominent companies that regularly seek to hire skilled professionals. That being said, Mumbai attracts a high influx of promising business opportunities and skilled expats from across the globe.
Key Tax & Accounting tips you should know as an expat in Mumbai
- Upon arriving in Mumbai, you are required to apply for a Permanent Account Number (PAN) with the Indian Income Tax Authorities. This is a one-time registration and will be quoted in all your correspondences with the tax authorities.
- As a resident in India, you are taxed on all income derived from sources within and outside the country.
- Non-residents are taxable only on their income within India.
- You are required to file your tax return before 31st July every year if your income exceeds 250,000 INR.
- You may be eligible to receive tax relief under a formal Double Taxation Avoidance Agreement (DTAA) between India.
- It’s best to seek professional tax advice to get an understanding of your tax obligations and take advantage of tax reliefs while in Mumbai.
Tax & Accounting for expats establishing a business in Mumbai
- A domestic company is taxed on its universal income in Mumbai, while a foreign company is only taxed on the income earned within India.
- A company that is registered under the Companies Act of India and its management is wholly based in India is considered a Domestic company.
- A company that is not an Indian origin, not registered under the companies act of India and its management and control is outside of India is considered a Foreign company.
- Different tax rates apply for domestic and foreign companies in Mumbai.
- The taxation rules for a foreign company is entirely different from that of a domestic company. Foreign company taxation depends on the taxation agreement made between India and other foreign countries.
- It’s best to enlist the help of an experienced professional who is well-tuned with all the laws, regulations and agreements with foreign countries. A skilled tax specialist will help you effectively plan your taxes, reducing any financial risks and helping you maximise profits.
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