John Miller & Co. of UK is maintaining and operating a branch in India for sale of its garment products. The adjusted total income of the branch for the year prior to charge of H.O. expenses of ₹ 20 lakh is of ₹ 100 lakh. Indian branch intends to know the maximum amount of H.O. expenses as allowable during the year under the Act. Specify the amount:
A. ₹ 20 lakh
B. Nil as HO is non-resident
C. ₹ 5 lakh
D. 8% of adjusted total income
Answer:C
John Miller & Co. of UK is maintaining and operating a branch in India for sale of its garment products. The adjusted total income of the branch for the year prior to charge of H.O. expenses of ₹ 20 lakh is of ₹ 100 lakh. Indian branch intends to know the maximum amount of H.O. expenses as allowable during the year under the Act. Specify the amount:
A. ₹ 20 lakh B. Nil as HO is non-resident C. ₹ 5 lakh D. 8% of adjusted total income