India rules · all investors

Parent Obligations: India rules for foreign companies

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375

The Indian company keeps statutory books under Indian accounting standards for a year ending 31 March. The parent consolidates under its own framework and year. A reporting pack that maps the Indian ledger to the group chart, with the adjustments the parent needs, avoids year-end surprises.

Aligning the two sets of books

Home-country tax rules often depend on Indian figures: the effective tax rate for controlled foreign company tests, dividend exemptions, foreign tax credits and transfer pricing documentation. The Indian advisers should know which numbers the parent needs and when.

Larger groups also report under country-by-country reporting and the global minimum tax rules, which draw on Indian revenue, profit, tax and headcount.

Checklist

Group reporting pack and calendar
Indian tax certificates for credits
TP data consistent across files
Figures for CFC and minimum tax tests
Board minutes and registers for governance

Common mistakes

Indian figures arriving after the parent's deadline
Different TP stories in the two countries
Missing tax certificates for credit claims
Unreconciled intercompany balances

How this applies to your country

Our service: Accounting and audit support

Questions

Can the Indian company change its year end to match the parent?

Indian companies must use the April–March year for tax; a different statutory year needs Tribunal approval, so most keep 31 March and report to the parent separately.

Do you advise on home-country tax?

No. We cover India and coordinate with the parent's foreign advisers.

Queries

Send the firm a query

Tell us briefly what you need. A member of the team will get back to you.

WhatsApp: Message us on WhatsApp
Telephone: +91-9999010513