Indian Corporate Tax Compliance for Foreign Companies: Key Deadlines, DTAA Benefits, Risks & Form 10F Explained
Created By :
Vikas Sharma
The Growing Importance of Indian Tax Compliance for Foreign Companies
India is the place to be right now for any global business - driven by its vast consumer base, strong talent pool, and sustained economic growth. However, entering the Indian market also means dealing with a tax system that is complex and highly regulated.
Foreign companies have to deal with multiple challenges – double taxation concerns, strict filing deadlines, and getting the extensive documentation requirements in place – especially if they want to claim any of the Double Taxation Avoidance Agreement (DTAA) benefits. If this gets messed up, you're looking at huge fines and losing treaty relief. For companies juggling multiple jurisdictions, the Indian system can feel completely overwhelming.
At AKM Global we simplify the process, handle the filings, secure the DTAA claims, and even represent you before the tax authorities, if the need arises.
Corporate Tax Return Deadlines in India: Staying Ahead of Compliance
When it comes to Indian corporate tax compliance, hitting the statutory deadlines is the most important thing. For the 2024–25 financial year (Assessment Year 2025–26), foreign companies need to mark the following dates clearly:
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October 31, 2025 → Filing deadline for companies without transfer pricing requirements.
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November 30, 2025 → Filing deadline for companies with international or specified domestic transactions requiring transfer pricing documentation.
There is no room for relaxation in these deadlines – even a single day’s delay can lead to penalties, interest charges, and, worst of all, the potential loss of DTAA benefits. That's why getting your accounts, tax calculations, and all supporting documentation ready before time is essential. Our experts at AKM Global focus on proactively managing these dates, ensuring our foreign clients never incur that last-minute panic, even with messy, multi-country revenue streams.
Tax Filing Requirements for Foreign Companies in India
If a foreign company is generating income from specific Indian sources, they have a non-negotiable obligation to file a corporate tax return if profits are derived from:
Remember this: Tax return filing is mandatory even if such income is already subject to withholding tax (TDS).
Without a valid PAN, access to DTAA treaty benefits can be denied. Furthermore, compliance isn't just filing the form; it means preparing specific Indian documentation, keeping records of contracts and invoices, and making sure your global accounting practices are aligned with Indian standards.
AKM Global steps in at every point, assisting with PAN registration, preparing the correct returns, and getting the withholding tax adjustments right to successfully prevent double taxation.
Understanding DTAA Benefits: Relief from Double Taxation
India has signed DTAAs with over 90 countries, specifically designed to prevent the same income from being taxed in two different countries. This relief usually works in one of two ways:
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Exemption method → Income is taxable only in one country.
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Credit method → Tax paid in India is credited against liability in the home country.
This can be a massive financial advantage. For instance, domestic law might tax your royalty income at 20%, but a DTAA often cuts that rate straight down to 10%. That’s a huge saving that many foreign companies miss, simply because they don't understand the full scope of DTAA available to them.
But here’s the key to unlocking those savings: foreign companies need to furnish two documents:
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A Tax Residency Certificate (TRC) from their home country
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Form 10F (mandatory e-filing since 2022, even without a PAN)
However, this electronic change has caused chaos. Simple errors like incomplete data or failing to link it to the TRC properly can instantly result in your DTAA claim being rejected.
The result? Higher taxes and annoying battles with the tax office. AKM Global ensures that the Form 10F e-filing is done timely – managing the TRC details and its submission and protecting clients from losing the crucial treaty benefits.
Case Study: How a European Company Reduced Its Tax Liability Through DTAA Relief
A European tech company was facing 20% tax on its Indian royalty income. With our careful planning and the correct application of DTAA rules (including meeting the deadlines for Form 10F and TRC), they legally reduced their effective tax rate to 10%. The company didn’t just achiever substantial tax savings, but also avoided penalties – clearly demonstrating how proactive, expert advice delivers real financial benefits along with compliance management.
Compliance Challenges and Risks for Foreign Companies
Foreign businesses often underestimate the risks of non-compliance in India. Key risks include:
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Penalties under Section 234F (?5,000–?10,000 for late filing)
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Interest under Sections 234A, 234B, and 234C for delayed tax payments
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Denial of DTAA benefits due to a faulty Form 10F or missing TRC
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Increased scrutiny of cross-border payments (royalties, FTS, capital gains)
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Litigation risks & significant reputational damage from discrepancies in documentation
How AKM Global Supports Foreign Companies in India
We offer full-service corporate tax compliance, perfectly customized for foreign companies. These cover:
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PAN application and registration
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Corporate tax return preparation and filing
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DTAA analysis and advisory on claiming its benefits
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Form 10F e-filing and TRC compliance
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Withholding tax advisory and adjustments
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Structuring cross-border transactions
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Representation in assessments and disputes before the Income Tax authorities
With over 44 years in the business, a specialist international tax team, and a client base across 30+ countries, we mix deep technical knowledge with partner-led advisory. Our whole focus is on letting you run your business in India without being weighed down by unnecessary tax risks.
Why Timely Tax Compliance Matters
For any foreign company doing business in India, corporate tax compliance is more than just an administrative obligation — it’s actually an important strategic requirement. It impacts your total profitability, your cash flow, and even your public image and standing.
Meeting these critical deadlines, correctly applying the DTAA rules, and nailing the Form 10F submission are the critical things you must do to keep tax costs low and completely steer clear of nasty penalties. With Indian tax regulations becoming increasingly stringent, expert guidance is essential. AKM Global is your reliable partner to help you navigate India's incredibly complicated tax framework smoothly and successfully. Reach out to us at info@akmglobal.in to resolve your tax queries and claim the DTAA benefits.
FAQs
1. Are foreign entities required to file a corporate tax return in India?
Absolutely, in cases where entities receive income from a permanent establishment, royalties, payments for technical services, dividends, or capital gains in India.
2. What is the due date for filing corporate tax returns in India for foreign businesses?
For FY 2024–25 (AY 2025–26), the deadline for return filing is October 31, 2025 (without transfer pricing), or November 30, 2025 (with transfer pricing).
3. Is it necessary to have Form 10F to avail DTAA benefits?
Form 10F, in conjunction with a TRC, is mandatory for claiming DTAA relief and reduced withholding tax rates in India.
4. How can AKM Global help foreign companies with Indian tax compliance?
By providing comprehensive services including PAN application, return filing, DTAA advisory, Form 10F e-filing, and representation before Indian tax authorities.