外国会社におけるPAN取得およびITR提出の要件

A Foreign Company connects with India through various commercial transactions such as having a project office/ Branch Office/ Liaison Office in India, Making Foreign Direct Investment in Indian entities, setting up a Wholly owned Subsidiary in India, provisions of services to Indian Residents,  etc.
So, an obvious question arises is whether such foreign entity is required to obtain PAN in India and whether such foreign company is required to file ITR in India. This question is dealt by Section 139A and Section 139 of Income Tax Act which provides provisions related to PAN and Filing of ITR.

This article discusses the detailed provisions related to the requirement of having a PAN and Filing of ITR in India by foreign companies.

本稿では、外国企業によるインドでのPAN取得およびITR提出の要件に関する詳細な規定について解説します。

• As per Section 139A(1) of Income Tax Act, 1961, a company is required is mandatorily required to apply for allotment of PAN if:
  • Its total Income exceeds the maximum amount which is not chargeable to tax;
  • It carries on business or profession where total sale, turnover or gross receipts is likely to exceed INR 5 Lacs;
  • It, being a resident, enters into a financial transaction of an amount aggregating to INR 2,50,000 or more in a financial year;

Read Also: Simplified Reporting by RBI for FDI| Single Master Form (SMF)

• Further, as per Section 139(5) of Income Tax Act, every person is required to quote PAN allotted to him:
  • While filing his return of Income with Income Tax Authority;
  • In all challans for the payment under Income Tax Act;
  • Documents pertaining to such transaction as may by prescribed by the board.

• In terms of power given under Section 139(5) of Income Tax Act, the Board has specified various transactions where a person is mandatorily required to quote PAN under Rule 114B of Income Tax Rules. 

• Relevant extract of Rule 114B, relevant for foreign companies, is as follows wherein foreign companies are mandatorily required to quote their PAN:
  • Payment made to Company or an institution for acquiring debentures or bonds issued by it for amount exceeding INR 50,000
  • Opening a bank account, other than time deposit and basic saving account, with a banking company or a co-operative bank
  • While filing application for issuance of debit or credit card;
  • Sale or purchase of shares of any company which is not listed on recognised stock exchange of an amount exceed INR 1,00,000

• Accordingly, if a foreign company carries out any of the transactions where it is required to specify PAN or is covered under any of the point of Section 139A(1) then foreign company is mandatorily required to obtain PAN.
• Therefore, if a foreign company acquires shares of any unlisted company of an amount exceeding INR 1,00,000 then such foreign company is mandatorily required to obtain PAN even if it has no obligation of filing ITR in Indian.

2. Issues where PAN is required to be obtained due to practical difficulties

• 2. 実務上の困難によりPAN取得が必要となるケース

• As per Section 90 and 90A of Income Tax, a non-resident person is not required to get TDS deducted on his Indian Income if he is not required to pay tax on such income as per DTAA.
• However, for this purpose, non-resident entities are required to file Form 10F alongwith Tax residency certificate with his jurisdictional Assessing Officer.
• TIll 30th September, 2023, non-resident entities were having the option to file Form 10F manually.
• However, with effect from 01.10.2023, Form 10F is mandatorily required to be filed online on Income Tax portal.
• A person can login at Income Tax Portal with his PAN and Password only. 
• Therefore, even if foreign entities are not required to obtain PAN as per Income Tax Act but same is required for filing of Form 10F.

3. Exemptions from obtaining PAN

3. PAN取得の免除

• As per Rule 114AAB(2) of Income Tax Rules, The provisions of section 139A shall not apply to a non-resident, being an eligible foreign investor, who has made transaction only in a capital asset referred to in Section 47(viiab) which are listed on a recognised stock exchange located in any International Financial Services Centre and the consideration on transfer of such capital asset is paid or payable in foreign currency.
• "eligible foreign investor" means a non-resident who operates in accordance with the Securities and Exchange Board of India, circular IMD/HO/FPIC/CIR/P/2017/003 dated 04th January, 2017
• Capital Asset covered under Section 47(viiab) are bond or Global Depository Receipt referred to Section 115AC(1) or rupee denominated bond of an Indian company or derivative made by a non-resident on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency.
• Such Exemption shall be available only if following conditions are fulfilled, namely:—
  • Investor does not earn any income in India, other than the income from transfer of a such capital asset;
  • Investor furnishes the following details and documents to the stock broker through which the transaction is made namely:
    • Name, email id and contact Number;
    • address in the country or specified territory outside India of which he is a resident;
    • a declaration that he is a resident of a country or specified territory outside India
    • Tax Identification Number or specific unique number in the country or specified territory of his residence

4. Filing of Income tax return by Foreign Companies

• After having a PAN, the question arises is whether such a company is required to file ITR in India?
• As per Section 139(1) of Income Tax Act, following persons are required to furnish ITR before the due date:
  • A Company or Firm;
  • A person, other than a company or a firm, if his total income during the previous year exceeded the maximum amount which is not chargeable to income-tax

• Therefore, Individual or HUF are required to furnish ITR only if they are liable to make payment of tax, i.e, there taxable income exceeds the exemption threshold.
• Whereas, Companies and firms are required to furnish ITR irrespective of their Income.
• Companies are defined as the companies Incorporated under Companies Act, 2013 including foreign companies. 
• As per Section 2(42) of Companies Act, 2013 “foreign company” means any company or body corporate incorporated outside India which—
  • has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
  • conducts any business activity in India in any other manner.

• Considering the provisions of companies Act and Income Tax Act, following are the snarious of ITR filing by foreign companies:

会社法および所得税法の規定を考慮すると、外国企業によるITR提出のシナリオは以下の通りです。

• インド国外で設立され、インドに外国直接投資（FDI）を行う企業は、インド国内に支店や代理店を有しない場合、「外国会社」とはみなされません。したがって、会社法で定められた外国会社の基準には該当しません。
• そのため、これらの企業は開示目的でPAN（恒久勘定番号）を取得する必要がありますが、インド国内で課税対象となる所得がない限り、所得税申告書（ITR）を提出する義務はありません。
• 例：
  • 米国企業がインドに1,000万ルピーのFDIを行った場合。当該企業は、その年度中に配当所得を受け取っていない。
  • このような米国企業は、開示要件に基づき、インドでPANを取得する必要があります。
  • しかし、インド国外で設立され、インド国内に支店を持たない企業は「外国会社」ではないため、ITRの提出義務はありません。

b. インド国内に支店／プロジェクトオフィス／連絡事務所を有する企業

• これらの企業はインド国内に事業拠点を持っているため、会社法上の「外国会社」とみなされます。
• したがって、当該外国会社は、所得の有無にかかわらず、支店／プロジェクトオフィス／連絡事務所のITRを提出する必要があります。

c. インドにおける完全子会社（WOS）の設立

• 完全子会社（WOS）は会社法に基づいて設立されるため、インド企業となります。
• したがって、当該WOSは、所得の有無にかかわらず、ITRの提出が義務付けられています。

5. 結論

外国会社（インド国外で設立された企業）は、個別の状況に応じて、PANの取得および所得税申告書の提出が必要となる場合があります。本記事はあくまで指針を示すものであり、各企業はPAN取得およびITR提出の義務について、専門家のアドバイスを受けることを推奨します。