What is specific to UK companies
Because most dividends are exempt in the UK, Indian withholding on them is a final cost. Royalties and fees are taxable in the UK with credit for Indian tax. HMRC certificates of residence must cover the payment date.
Routes compared
| Route | Indian tax | What it needs |
|---|---|---|
| Dividend | 10% (15% for certain property vehicles) | Distributable profits; board or shareholder approval |
| Royalty | 15% (10% for equipment) | A real licence; arm's-length price |
| Service fee | Technical fees: 15% (10% for equipment-related services). | Agreement, evidence of services, benchmark |
| Interest | 15% (10% for banks) | Registered ECB loan |
| Buyback | Domestic rules | Company-law limits; FEMA pricing |
Our services
How SU and Company helps
We plan and document how money moves back to the parent, at the right treaty rate.
- Dividend, royalty, fee and interest planning
- Treaty withholding and remittance paperwork
- Board and FEMA steps for dividends and buybacks
- Indian figures and certificates for the parent's tax relief
Questions
Which route is cheapest?
It depends on the parent's home-country position and the substance behind each charge; dividends are simplest, fees and royalties need contracts and transfer pricing support.
General information as at 5 November 2026, not advice for a particular case. Indian and UK rules change often; confirm the current position before acting. UK law points should be confirmed with a UK adviser.