Furnishing of annual statement to tax department in relation to Liaison Offices of non-residents

The Central Board of Direct Taxes has prescribed Form 49C to be submitted by a non-resident having an liaison office (LO) in India. The annual statement in Form 49C is to be submitted in electronic form within 60days from the end of financial year ending on 31 March, 2012.

One may note that,

• The annual statement seeks to collect extensive details about activities of the non-resident from India or their operation in India.
• The non-residents would be required to obtain and file a large volume of information relating to their operations from or in India.
• The non-residents would be required to document the role played by their LO in the overall operations since the tax authorities may use the information from the annual statement to ascertain the taxability of the non-residents in India.