Taxation for doing business in multiple countries

Hello,

Hope you are doing well!!

I am telling regarding India only.If you are doing business with Indian consumers and generating income in India, you may be subject to Indian tax laws. The tax liability in India depends on various factors such as the type of business, the nature of income, and the presence of a permanent establishment in India.

The presence of a permanent establishment is a critical factor in determining tax liability in India. A permanent establishment means a fixed place of business, such as an office or factory, through which the business carries out its operations. If you have a permanent establishment in India, you will subject to Indian tax laws.

However, if you do not have a permanent establishment in India, you may still be subject to Indian tax laws if you have a significant economic presence in India. Under the recently introduced digital taxation framework in India, businesses with a significant economic presence in India, such as those with a large user base or generating significant revenue from India, subject to Indian tax laws.

If you are liable then you need to take PAN number in India and pay taxes on the income earned from those customers. Additionally, you may also be required to file tax returns in India.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Dear sir,

This is a portal where we reply on tax queries related to India, however considering the question it can be said that if you are operating from Australia and paying to people from other parts of the world who are not your employee I don't think you would be required to pay any taxes in such country.

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

- Assuming you will sell goods/services digitally then under Indian Income tax Act, if your value of sale consideration exceeds INR 2CR (i.e., INR 20 million) in a financial year then you would be liable to pay equalisation levy of 2% on the sale consideration value and income would be exempt u/s 10(50). If the value of sale consideration would be less than INR 2CR (i.e., INR 20 million) in a financial year then tax would be payable on the income under normal provisions. 

- It would be better if you incorporate a company in India as turnover from India region would be 95% of total turnover. Creating a company in India would eliminate chances of statutory and regulatory non-compliances in India.

For detailed discussion you may opt for phone consultation

In India since you are collecting amounts from users, you may be regarded as ecommerce operator. You may be required to pay equalisation levy in India at the rate of 2% of consideration received. This shall be applicable if your turnover exceeds Rs. 2 Crores.

Depending on laws of each jurisdiction you may be required to pay taxes and register. 

We can help you in detailed advisory for different jurisdictions. Please reach out for detailed consultation. 

Regards

Prerna

You only need to pay tax in country of your business registration which will be australia

For rest all countries it will be overseas trade 

With respect to payment to consultant based in differen country kindly note that withholding Tax (TDS) liability will come as per the australia treaty with out country and scope of work involved which is mandatory to comply