CROSS-BORDER
How customs duty in India is built from BCD, SWS, AIDC and IGST, how customs values imports from a foreign parent, how the bill of entry works on ICEGATE, and what drawback and advance authorisation save.
Cross-Border
Written by CA Nandini Hasija, Krystal7 Consultants. Last updated 23 October 2026.
Customs duty in India on most imports has three layers. Basic customs duty applies at the rate in the First Schedule to the Customs Tariff Act, 1975, or a lower notified rate. The Social Welfare Surcharge adds 10 percent of that duty. IGST, usually 5 or 18 percent, applies on the assessable value plus both. AIDC replaces part of the basic duty on some goods. The value is the transaction value under section 14 of the Customs Act, 1962.
This page is for the Indian subsidiary of a foreign group that imports from its parent or from third party suppliers. It covers each part of the duty, valuation and related party rules, and classification. It then covers the bill of entry, payment, drawback, advance authorisation and a landed cost example.
Customs duty is the tax India charges on goods brought into the country. Section 12 of the Customs Act, 1962 levies it at the rates in the Customs Tariff Act, 1975. The importer pays it before the goods leave customs control. For a foreign group, the importer is normally the Indian subsidiary.
The Customs Act defines an importer widely. Section 2(26) includes any owner, beneficial owner or person holding itself out as the importer, from import until clearance. In practice the importer of record is the entity whose IEC and GSTIN appear on the bill of entry.
A foreign parent with no Indian entity cannot easily act as importer. Its Indian customer or subsidiary files the bill of entry under its own IEC. Our IEC guide explains how a new subsidiary gets one.
The duty is not one rate. It is a stack of separate levies, each under its own law. Each has a different base, and only IGST is creditable against GST. That split decides the real cost of an import.
Import duty in India has up to five parts. Basic customs duty is the core. AIDC applies on some goods. The Social Welfare Surcharge is charged on the customs duties. IGST applies on the value plus those duties. Trade remedy duties such as anti dumping duty apply only where notified.
| Component | Law | Base | Typical rate | Creditable against GST |
|---|---|---|---|---|
| Basic customs duty (BCD) | Section 12, Customs Act, 1962; First Schedule, Customs Tariff Act, 1975 | Assessable value | Tariff rate or notified effective rate | No |
| Agriculture Infrastructure and Development Cess (AIDC) | Section 124, Finance Act, 2021 | Assessable value | Only on specified goods | No |
| Social Welfare Surcharge (SWS) | Section 110, Finance Act, 2018 | Aggregate customs duties under section 12 | 10% for most goods | No |
| Integrated GST (IGST) | Section 3(7), Customs Tariff Act, 1975 | Assessable value plus customs duties | 5%, 18% or 40% for most goods | Yes |
| GST Compensation Cess | Section 3(9), Customs Tariff Act, 1975 | Assessable value plus customs duties | Nil on all goods from 1 Feb 2026 | Was creditable against cess only |
| Anti dumping, countervailing or safeguard duty | Sections 8B, 9 and 9A, Customs Tariff Act, 1975 | Notified per product and source | Notified case by case | No |
The order of calculation matters. Customs first fixes the assessable value. It then applies basic customs duty and AIDC. It adds the Social Welfare Surcharge. Finally it charges IGST on the total of the value and those duties.
A preferential rate under a free trade agreement cuts basic customs duty only. The Social Welfare Surcharge falls with it, because it is a percentage of it. IGST stays. Our guide to rules of origin under CAROTAR covers what an importer must hold to claim an FTA rate.
The First Schedule to the Customs Tariff Act, 1975 sets a tariff rate for each eight digit tariff item. The government can lower that rate by an exemption notification under section 25 of the Customs Act. The rate you pay is the lower effective rate where a notification applies.
Section 25(1) lets the Central Government exempt goods in the public interest, either absolutely or subject to conditions. Many concessional rates sit in large general notifications rather than in the tariff itself. An importer must read both the tariff and the notifications for each line.
The tariff structure has shrunk. The Union Budget 2025-26 removed seven tariff rates for industrial goods, after seven removed in Budget 2023-24. That left "only eight tariff rates, including 'zero' rate" (PIB release 2098364, 1 Feb 2025). The same release said an item would carry no more than one cess or surcharge.
The Union Budget 2026-27 of 1 Feb 2026 went further. The Budget speech, at paragraph 145, proposed to review exemptions and fold effective rates into the tariff schedule. These concessional rates move into the First Schedule from 1 May 2026 (TRU letter, Budget 2026-27).
Some conditional exemptions lapsed on 31 Mar 2026, so the standard rate applies from 1 Apr 2026. The TRU letter gives examples from Notification 45/2025-Customs of 24 Oct 2025. Check every line you import against the tariff as it stood after 1 May 2026, not against last year's bill of entry.
The Social Welfare Surcharge is 10 percent of the aggregate customs duties levied under section 12 of the Customs Act. For most goods that is 10 percent of basic customs duty. AIDC is a separate duty of customs on specified goods only. Neither is creditable against GST.
Section 110 of the Finance Act, 2018 created the Social Welfare Surcharge. It replaced the education cesses on imports. Notification 11/2018-Customs exempts it or sets a lower rate on some goods. The Budget 2026-27 TRU letter, for example, exempts all goods of heading 9503 from it from 2 Feb 2026.
Section 124 of the Finance Act, 2021 created AIDC. It applies only to goods specified for it, at effective rates in Notification 11/2021-Customs as amended. Where AIDC applies, the basic customs duty on that line is usually lower. Budget 2025-26 also exempted the Social Welfare Surcharge on 82 tariff lines that carry a cess (PIB release 2098364).
The practical effect is simple. Read the line in the tariff, then the exemption notification, then the AIDC and Social Welfare Surcharge notifications. Your customs broker's system does this, but the importer carries the liability if the rate is wrong.
IGST on imported goods is levied under section 3(7) of the Customs Tariff Act, 1975 at the GST rate for those goods. Section 3(8) sets the base as the assessable value plus basic customs duty and other customs duties. The importer can claim the IGST as input tax credit if the bill of entry carries its GSTIN.
The rate follows the GST rate notifications. FAQ 7 on the 56th GST Council decisions confirms this for imports (PIB FAQs, Sep 2025). It says the IGST on imported goods "will be the GST rates as notified in the rate notification". From 22 Sep 2025 most goods fall at 5 percent or 18 percent, with 40 percent for a short list of sin and luxury goods.
The credit depends on data. Customs data for each bill of entry flows from ICEGATE to the GST portal against the GSTIN quoted. The credit appears in the importer's GSTR-2B. A wrong GSTIN, or the parent's name in place of the subsidiary, breaks that link.
Basic customs duty, AIDC and the Social Welfare Surcharge stay as cost, unless the goods later earn drawback on export.
Our page on GST input tax credit rules covers the conditions and time limits for claiming the IGST credit.
No. For imports cleared from 1 Feb 2026 the cess rate is nil on all goods. The GST Council ended the compensation cess on most goods from 22 Sep 2025. Notification 03/2025-Compensation Cess (Rate) of 31 Dec 2025 then set the cess to nil from 1 Feb 2026. That covered the last pan masala and tobacco entries.
The FAQs on the 56th GST Council meeting said the Council had decided "to end the Compensation Cess levy" (FAQ 38). Mid size and large cars moved to 40 percent "with no compensation cess" (FAQ 35). Tobacco items kept the old GST and cess rates until the cess loans and interest were repaid (FAQ 1).
The GST Council's December 2025 newsletter reports the final step. From 1 Feb 2026 the cess on pan masala and tobacco entries is nil, and those goods move to the 40 percent GST rate. Section 3(9) of the Customs Tariff Act still exists, but it now charges cess at a nil rate.
Tobacco products carry other levies that this page does not cover. If you import any goods from Chapters 21 or 24, check the excise linked duties separately with your broker.
Customs values imported goods at their transaction value under section 14 of the Customs Act, 1962. That is the price actually paid or payable for the goods when sold for export to India. It includes freight and insurance to the place of import and the additions listed in the valuation rules.
Customs converts the value into rupees at the exchange rate "determined by the Board" (section 14 on CBIC). It uses the rate "in force on the date on which a bill of entry is presented under section 46". CBIC notifies these rates by notification. Your bank's rate on the remittance date does not count.
The Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 (CVR 2007) set the detail. Rule 3 accepts the transaction value, subject to rule 10. If customs rejects it, rules 4 to 9 apply in order: identical goods, similar goods, deductive value, computed value and a residual method.
Rule 10 adds costs the buyer bears but the invoice may not show.
| Addition under rule 10 of CVR 2007 | Example in a group import |
|---|---|
| Commissions and brokerage, except buying commission (10(1)(a)) | Commission the subsidiary pays the parent's sales agent |
| Value of tools, dies, moulds and materials supplied by the buyer free or at a discount (10(1)(b)) | Moulds the subsidiary pays for and sends to the supplier |
| Royalties and licence fees related to the goods, paid as a condition of sale (10(1)(c)) | Royalty to the parent on products made from imported parts |
| Proceeds of resale that accrue to the seller (10(1)(d)) | A share of resale profit paid back to the parent |
| Other payments made as a condition of sale (10(1)(e)) | A fee the parent requires before it will ship |
| Freight, loading, unloading and handling to the place of import (rule 10(2)) | Ocean or air freight on a free on board contract |
| Insurance to the place of import (rule 10(2)) | Marine cover the subsidiary buys separately |
Where the invoice does not show freight or insurance, rule 10(2) supplies default percentages of the free on board value. Read the current percentages, and any cap for air freight, in rule 10(2) on cbic.gov.in before you rely on them.
Rule 12 lets the officer doubt the declared value and ask for more information. If the doubt remains, the officer can reject the value and move to rules 4 to 9.
Customs accepts the price between related parties if the relationship did not influence it, under rule 3(3) of CVR 2007. The importer declares the relationship in the bill of entry. Where royalties, licence fees or similar payments are involved, the case may go to the Special Valuation Branch (SVB).
Rule 2(2) of CVR 2007 lists when buyer and seller are deemed related. A parent and its wholly owned subsidiary always meet one of those tests. Rule 3(3)(a) accepts the price if an examination of the circumstances shows no influence. Rule 3(3)(b) accepts it if it closely approaches certain test values.
The SVB procedure comes from Circular 5/2016-Customs of 9 Feb 2016, read with Circular 4/2016-Customs for pending cases. Circular 5/2016 replaced Circular 1/98 and Circular 11/2001. JNCH set it out in Facility Notice 35/2016 of 25 Feb 2016.
Under that circular, the port first examines every related party import. Additions under rule 10(1)(a) and (b) stay with the port's appraising group. Payments under rule 10(1)(c), (d) and (e) are the ones that may go to the SVB.
| Step under Circular 5/2016-Customs | Who acts | Time limit |
|---|---|---|
| File Annexure A questionnaire with the bill of entry | Importer | With the bill of entry, ideally 15 days before import |
| Prima facie examination of the relationship | Port officer | Within 3 days of the bill of entry |
| File Annexure B questionnaire and documents with the SVB | Importer | Within 60 days |
| Complete the investigation | SVB | Target 2 months from Annexure B; Commissioner approval beyond 2 months; Chief Commissioner beyond 4 months |
| Issue show cause notice, if needed | Port | Within 15 days of the investigation report |
| Declare any change in terms (Annexure C) | Importer | When the terms change |
Some imports stay out of the SVB process. Paragraph 4.5 of the JNCH notice excludes samples and prototypes, and goods that are fully exempt or at nil duty. It also excludes imports below INR 1,00,000 each, where the total stays within INR 25,00,000 in a financial year.
The 2016 circular removed two old burdens. Customs no longer takes an extra duty deposit while the case runs. Renewal of SVB orders was "discontinued with immediate effect". A security of 5 percent of declared value applies only if the importer misses the 60 day document deadline. It lasts three months at most.
The goods are cleared on provisional assessment under section 18 while the SVB works. The Finance Act, 2025 added section 18(1B), which sets two years to finalise a provisional assessment. The Commissioner can extend it by one year for sufficient cause (TRU letter, Budget 2025-26).
Customs value and transfer pricing look at the same price from two sides. Income tax tests it at arm's length under sections 161 to 173 of the Income Tax Act, 2025. A year end transfer pricing adjustment that raises the price can raise the customs value as well. We ask clients to agree the transfer pricing policy and the customs declaration together. Our guides to transfer pricing documentation and arm's length price methods cover the income tax side.
Every import is classified under an eight digit tariff item in the First Schedule to the Customs Tariff Act, 1975. The first six digits follow the World Customs Organization's Harmonized System. The tariff item decides the basic customs duty, any AIDC, the IGST rate and any import policy condition.
Classification follows the General Rules for Interpretation printed in the First Schedule. Section notes and chapter notes bind the result. The importer self assesses the classification under section 17(1) of the Customs Act, so the risk of a wrong code sits with the importer.
A supplier's six digit code is a starting point only. Indian eight digit items often split a six digit heading by material, use or size. We see disputes when a subsidiary copies the parent's export code without checking the Indian split.
An importer that wants certainty can apply to the Customs Authority for Advance Rulings under section 28H. Until 30 Mar 2026 a ruling bound customs for three years. The Finance Act, 2026 extended this to five years, as paragraph 165 of the Budget speech proposed. Holders of rulings in force on that date can ask the Authority to extend them.
Classification also drives GST. IGST at customs and GST on onward sales both follow the same HSN logic. A wrong code at import can mean a wrong rate on every invoice that follows.
The importer, usually through a licensed customs broker, files the bill of entry electronically on ICEGATE under section 46 of the Customs Act. It quotes the importer's IEC and GSTIN, the tariff item, the value and the duty. It must be filed before the end of the day before the vessel or aircraft arrives.
Section 46(3), as amended by the Finance Act, 2021, moved India to advance filing. Board Circular 08/2021-Customs of 29 Mar 2021 sets the limits by mode of transport. Bengaluru customs explained it in Public Notice 13/2021 of 31 Mar 2021 and applied it in the system from 30 Mar 2021. Goods from some neighbouring countries can be filed by the end of the day of arrival.
Late filing has a cost. Regulation 4 of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018 charges the importer for each day of default. The daily charge is lower for the first three days and higher for each later day. For a bill of entry on which no duty is payable, JNCH records a ceiling of INR 50,000. Read the current daily amounts in regulation 4 before you brief your broker. The proper officer can waive the charge for sufficient cause under the second proviso to section 46(3) (JNCH Public Notice 29/2024).
| Step | Who acts | What happens |
|---|---|---|
| 1. Register on ICEGATE | Importer | Links the IEC, creates users, registers the bank account |
| 2. Appoint a customs broker | Importer | Broker files under the importer's IEC, never its own |
| 3. File the bill of entry in advance | Broker | Home consumption, warehousing or ex bond type |
| 4. Upload documents on eSanchit | Broker | Invoice, packing list, transport document, origin proof, licences |
| 5. Self assessment and risk check | Importer and customs | Self assessment under section 17(1); the risk system decides on facilitation, assessment or examination |
| 6. Pay duty | Importer | Online through ICEGATE, or by the deferred date for eligible importers |
| 7. Out of charge | Customs | Goods released; data flows to GST and to the bank for IDPMS |
Three bill of entry types matter. A bill for home consumption clears goods into India on payment of duty. A warehousing bill moves goods into a bonded warehouse without paying duty yet. An ex bond bill clears them later from that warehouse.
The Finance Act, 2026, which received assent on 30 Mar 2026, substituted section 67. Warehoused goods can move between bonded warehouses on prescribed conditions. No prior permission from the proper officer is needed (item A.1(vii) in the Annexure to the Budget speech).
Import duty is payable before goods are cleared for home consumption, under section 47 of the Customs Act, 1962. The due date depends on whether the bill of entry is self assessed or assessed by an officer. Eligible importers can clear first and pay later under the Deferred Payment of Import Duty Rules, 2016.
Read section 47(2) on cbic.gov.in or indiacode.nic.in for the current payment deadline. Section 28AA provides for interest on delayed payment of duty, and the rate is fixed by notification. Confirm the rate in force before you plan a payment date.
Deferred payment rests on the proviso to section 47(1). Notification 13/2026-Customs (N.T.) of 1 Feb 2026 substituted the due dates in rule 4 of the 2016 Rules from 1 Mar 2026. Duty on bills returned for payment in any month except March is now due by the 1st of the next month. Duty on March bills is due by 31 March.
Notification 12/2026-Customs (N.T.), also of 1 Feb 2026, adds a new class called the Eligible Manufacturer Importer. CBIC Circular 08/2026-Customs of 28 Feb 2026 sets the conditions. The facility runs from 1 Apr 2026 to 31 Mar 2028 (Circular 08/2026-Customs).
An Eligible Manufacturer Importer needs at least 25 bills of entry or shipping bills in the previous financial year, or 10 for an MSME. It also needs aggregate turnover above INR 5 crore across GSTINs on its PAN and two financial years of business. Our AEO guide covers the AEO tiers that also give deferred payment.
Both schemes give back or waive customs duty on goods tied to exports. Drawback refunds duty already paid on imported goods that are re exported or used in exported products. Advance authorisation lets an exporter import inputs without paying basic customs duty, IGST and other listed duties.
Drawback has two routes under the Customs Act. Section 74 allows drawback of duty on imported goods that are re exported as they are, if customs can identify them. The percentage refunded and the time allowed to re export are set in section 74 and the rules under it. Check both on cbic.gov.in before you plan a re export. Section 75 gives drawback on imported materials used in exported goods. The rates are notified under the drawback rules made under that section.
Advance authorisation sits in Chapter 4 of the Foreign Trade Policy 2023. Paragraph 4.03(a) allows "duty free import of input" physically incorporated in the export product, with normal wastage. Fuel, oil and catalyst used in production can also be allowed (FTP 2023 Chapter 4).
| Feature | Advance authorisation | Drawback under section 75 | Drawback under section 74 |
|---|---|---|---|
| When duty is saved | At import, duty not paid | After export, refund | After re export, refund |
| Duties covered | BCD, IGST, Compensation Cess, anti dumping, safeguard and others listed in FTP paragraph 4.14 | Duty on inputs at the notified or fixed rate | Duty paid on the imported goods |
| Main condition | Minimum value addition of 15% (FTP 4.09(i)) | Inputs used in the exported goods | Goods identified and re exported |
| Time limits | Import within 12 months (HBP 4.39(a)); export within 18 months (HBP 4.40(a)) | Claim with the shipping bill | Period set in section 74 |
| Who issues | DGFT Regional Authority | Customs | Customs |
| Transfer | Actual user condition (FTP 4.16(i)) | Not relevant | Not relevant |
The Handbook of Procedures 2023, Chapter 4 allows one revalidation of import validity for twelve months (paragraph 4.39(c)). It allows up to two six month extensions of the export obligation on payment of a composition fee (paragraph 4.40(e) and (f)).
Paragraph 4.06 of the FTP adds a Self Ratification Scheme. An exporter that holds AEO status can ratify its own input norms where no standard norm exists. That is one more reason a regular exporter may want AEO status.
From 1 Oct 2026 import payments follow FEMA 23(R)/2026-RB of 13 Jan 2026. These are the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. Regulations 9 to 12 cover the time for payment, advance payments and imports that do not arrive. The AD bank tracks each import in IDPMS.
Regulation 9 ties the payment deadline to the period in the underlying contract. The AD bank may extend it on reasons it accepts. Regulation 10 lets the AD bank allow advance payments after checking the need. Above its own thresholds, the bank may ask for a standby letter of credit or a guarantee. Interest on a delayed import payment cannot exceed the all in cost ceiling for trade credit.
Regulation 12 deals with imports that never happen. The importer must bring back any advance it paid. If it fails, or the IDPMS entry stays open, later advances need a standby letter of credit or a guarantee (FEMA 23(R)/2026-RB).
The bill of entry closes the loop. The AD bank matches the payment to the bill of entry in IDPMS. For imports up to INR 10,00,000, regulation 4(2) lets the bank close the entry on the importer's declaration. Our guide to advance remittance for imports covers the bank side in detail.
| Date | Old rule | New rule | Instrument |
|---|---|---|---|
| 2 Feb 2025 and 1 May 2025, by line | More basic customs duty tariff rates | Eight tariff rates including zero for industrial goods | Union Budget 2025-26; TRU letter of 1 Feb 2025; PIB release 2098364 |
| 2025, on assent to the Finance Act, 2025 | No time limit to finalise provisional assessment | Two years, extendable by one year | Section 18(1B), Customs Act, 1962 |
| 22 Sep 2025 | GST slabs of 5, 12, 18 and 28 percent, with cess on many goods | Mainly 5 and 18 percent, 40 percent for a short list; cess ended except on tobacco | 56th GST Council; rate notifications |
| 1 Feb 2026 | Compensation cess on pan masala and tobacco | Cess nil on all goods | Notification 03/2025-Compensation Cess (Rate) |
| 1 Mar 2026 | Earlier due dates in rule 4 of the Deferred Payment of Import Duty Rules, 2016 | Paid monthly, by the 1st of the next month; March by 31 March | Notification 13/2026-Customs (N.T.) |
| 1 Apr 2026 | Deferred payment only for AEO T2 and T3 importers | Also for Eligible Manufacturer Importers until 31 Mar 2028 | Notification 12/2026-Customs (N.T.); Circular 08/2026-Customs |
| 30 Mar 2026 | Customs advance ruling valid three years | Valid five years; earlier rulings can be extended on request | Finance Act, 2026, amendment of section 28J(2) |
| 30 Mar 2026 | Warehoused goods moved between bonded warehouses with the proper officer's permission | No prior permission needed, on prescribed conditions | Finance Act, 2026, substituted section 67 |
| 1 May 2026 | Concessional rates spread across exemption notifications | Concessional rates moved into the First Schedule | Finance Act, 2026, amendment of the First Schedule (clause 136(c) and (d) of the Bill); TRU letter, Budget 2026-27 |
| 1 Oct 2026 | Import payments under the RBI Master Direction framework | Regulations 9 to 12 of the 2026 regulations | FEMA 23(R)/2026-RB |
This page first went up on 19 Mar 2026. These events came after that date.
An Indian subsidiary imports machine parts from its US parent. The figures and rates are illustrative. Check the real tariff item, the effective rate notification and the CBIC exchange rate on the bill of entry date.
Assumptions:
| Line | Calculation | Amount (INR) |
|---|---|---|
| Assessable value | USD 52,750 at INR 88 | 46,42,000 |
| Basic customs duty | 10% of 46,42,000 | 4,64,200 |
| Social Welfare Surcharge | 10% of 4,64,200 | 46,420 |
| Value for IGST | 46,42,000 + 4,64,200 + 46,420 | 51,52,620 |
| IGST | 18% of 51,52,620, rounded | 9,27,472 |
| Total duty paid at customs | 4,64,200 + 46,420 + 9,27,472 | 14,38,092 |
| Landed cost before port and broker charges | 46,42,000 + 14,38,092 | 60,80,092 |
| Less IGST taken as input tax credit | 9,27,472 | |
| Net landed cost | 51,52,620 |
The duty that stays as cost is INR 5,10,620. That is 11 percent of the assessable value.
Now add a related party royalty. The subsidiary pays its parent a royalty on products made from these parts. Customs finds that the royalty is related to the parts and paid as a condition of sale. The royalty attributable to this shipment is INR 4,00,000, so rule 10(1)(c) adds it to the value.
| Line | Calculation | Extra amount (INR) |
|---|---|---|
| Extra basic customs duty | 10% of 4,00,000 | 40,000 |
| Extra Social Welfare Surcharge | 10% of 40,000 | 4,000 |
| Extra IGST | 18% of 4,44,000 | 79,920 |
| Total extra duty | 1,23,920 | |
| Of which a straight cost | 40,000 + 4,000 | 44,000 |
If customs finds this two years later, it demands the short payment under section 28 with interest under section 28AA. Spread across a year of imports, the amount can be large. Declaring the royalty in Annexure A at the first import costs far less than a demand later.
Our team sets up IEC, ICEGATE and the customs file for new subsidiaries through our IEC registration service.
There is no single rate. Basic customs duty depends on the eight digit tariff item in the Customs Tariff Act, 1975, or a lower rate notified under section 25. The Social Welfare Surcharge adds 10 percent of that duty for most goods. IGST then applies, usually at 5 or 18 percent.
Start with the assessable value under section 14 of the Customs Act, 1962. That is the transaction value plus freight, insurance and rule 10 additions, at the CBIC exchange rate. Apply basic customs duty and any AIDC. Add the Social Welfare Surcharge. Charge IGST under section 3(7) of the Customs Tariff Act on the total.
Yes. IGST paid at customs is input tax credit for the importer registered under GST, provided the bill of entry carries its GSTIN. Customs data flows from ICEGATE to the GST portal and appears in GSTR-2B. Basic customs duty, AIDC and the Social Welfare Surcharge are not creditable.
It is a surcharge under section 110 of the Finance Act, 2018. It is 10 percent of the aggregate customs duties levied under section 12 of the Customs Act. For most goods that means 10 percent of basic customs duty. Notification 11/2018-Customs exempts or lowers it on some lines.
No. For imports cleared from 1 Feb 2026 the cess rate is nil on all goods. The GST Council ended the cess on most goods from 22 Sep 2025. Notification 03/2025-Compensation Cess (Rate) of 31 Dec 2025 then set it to nil from 1 Feb 2026. That covered the last pan masala and tobacco entries.
The Agriculture Infrastructure and Development Cess is a duty of customs under section 124 of the Finance Act, 2021. It applies only to goods specified for it, at rates in Notification 11/2021-Customs as amended. On those lines basic customs duty is usually lower. AIDC is not creditable against GST.
It is the value on which customs charges duty. Under section 14 of the Customs Act, 1962 it is the transaction value of the goods for export to India. It includes freight and insurance to the place of import and additions under rule 10 of the Customs Valuation Rules, 2007.
It can. Rule 10(1)(c) of the Customs Valuation Rules, 2007 adds royalties and licence fees related to the imported goods. The test is whether the buyer pays them as a condition of sale. Customs examines such cases at the port and may refer them to the Special Valuation Branch under Circular 5/2016-Customs.
It is the customs unit that examines whether a relationship between buyer and seller influenced the import price. Under Circular 5/2016-Customs the importer files Annexure A with the bill of entry and Annexure B within 60 days. The SVB aims to finish within two months and gives an investigation report, not an appealable order.
By the end of the day before the vessel, aircraft or vehicle arrives. That is the rule in section 46(3) of the Customs Act, 1962, as amended by the Finance Act, 2021. The system applied it from 30 Mar 2021. Goods from some neighbouring countries can be filed by the end of the day of arrival. Late filing attracts a daily charge unless the officer waives it.
ICEGATE is the electronic gateway of the Central Board of Indirect Taxes and Customs. IEC holders and customs brokers use it to file bills of entry and shipping bills, pay duty, register bank accounts and track clearance. Import data flows from it to the GST portal for input tax credit.
Yes, if it qualifies. AEO T2 and T3 importers, and from 1 Apr 2026 Eligible Manufacturer Importers, can pay under the Deferred Payment of Import Duty Rules, 2016. Since 1 Mar 2026 duty on a month's bills is due by the 1st of the next month, and March duty by 31 March.
It is a DGFT authorisation under paragraph 4.03 of the Foreign Trade Policy 2023. It lets an exporter import inputs without paying basic customs duty, IGST and other listed duties. It needs 15 percent minimum value addition. Imports are allowed for 12 months and exports must follow within 18 months.
Drawback refunds customs duty on goods connected with exports. Section 74 of the Customs Act refunds duty on imported goods re exported as they are. Section 75 refunds duty on imported materials used in exported goods, at rates notified under the drawback rules made under that section.
Five years under section 28J(2) of the Customs Act, as amended by the Finance Act, 2026, which received assent on 30 Mar 2026. Before that, a ruling bound customs for three years. A ruling still ends earlier if the law or the facts change. Holders of rulings in force on assent can ask the Authority to extend them.
Customs uses the CBIC rate in force on the date the importer presents the bill of entry. Section 14 of the Customs Act, 1962 sets this rule. CBIC notifies these rates by notification. The bank's rate on the date you pay the supplier does not change the customs value.
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WRITTEN BY
Nandini Hasija is a co-founder of Krystal7. She leads brand, business development and marketing, and works with founders to define their engagement. She is a Chartered Accountant and achieved All India Rank 49 in the CA examinations.
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Krystal7 Consultants has an exemplary and professional attitude in their approach to services rendered by them. The team and it's leaders are thoroughly aggressive all throughout setting the processes timely and getting procedures done in a time bound and disciplined manner. Highly recommended Consultants to go-to.We wish them all the very best in all their future endeavours and growth story.
Amazing compliance team, always available for queries.
Compliances are always easy with Nandini’s support.
I had a great experience with this firm while filing my ITR! The team handled my ITR filing end-to-end, answered all my queries patiently, and made the entire process smooth and hassle-free. Nandini is highly professional, responsive, and took complete ownership throughout. Highly recommended for anyone looking for reliable tax filing assistance.
Very energetic and young professionals with best consultation and commitment of work completion on time in regionable fees. Mr. Nihal is very punctual & committed .
Very happy with my experience with them. They have thoroughly guided me through the processes and executed them as planned, for all my registrations. Definitely would recommend using their services.
“I had an excellent experience. The process was smooth, quick, and handled very professionally. I’m really impressed with the service!”
Recap Crystal Seven Consultants, especially Nandini Hassija and Nihal Srivastava, have redefined my experience with compliance management. From professionalism to problem-solving, they delivered trust, accuracy, and peace of mind—qualities rare in this industry. Detailed Review When Nandini first called me from Crystal Seven Consultants, I’ll admit I was hesitant. In the compliance and consultancy space, it’s common to see aggressive sales tactics with little to no delivery. But Nandini immediately broke that stereotype with her professionalism, clear communication, and genuine approach. She personally assisted me with something as important as a resignation process, ensuring it was handled responsibly and without stress. Later, Nihal stepped in and impressed me with his technical expertise and eye for detail. He uncovered a serious compliance error (a mug-up) created by my previous consultant—something that could have been risky and damaging for my company. The way Nihal managed this issue with care, accuracy, and professionalism gave me full confidence that my compliance matters were finally in safe hands. Today, I rest assured knowing that Daxy’s compliances are being managed with integrity, precision, and accountability. Both Nandini and Nihal have shown me that this industry can, in fact, be built on trust, transparency, and delivery. I genuinely recommend Crystal Seven Consultants to any business owner who wants their legal, financial, and compliance matters handled not just properly—but with care, reliability, and genuine expertise.
Company closure was managed without a single visit to any office. Krystal7 team is very professional and kept me informed.
Best experience ever Handle me with respect & patience and make me feel at ease while registering my trademark and other works
KEEP READING
More practitioner guides on the same topic, written by the Krystal7 Consultants advisory team.
Incorporation · FEMA & RBI · Transfer Pricing · Income Tax & TDS
Cross-BorderWhat an Indian importer must declare, hold and produce under section 28DA and CAROTAR 2020, how customs verifies a claim, and how it works for imports under the UAE, Australia, UK and EFTA deals.
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IncorporationWhich documents a foreign founder or parent company must notarise, apostille or consularise for an Indian incorporation, with a 13 country route table, the German and UAE exceptions, document age rules and a checklist.
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IncorporationWhat section 12 and rule 25 require for a new company's registered office, which address proofs work for homes, rented and co working premises, and how the state, GST and bank checks depend on the same address.
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ServiceRegister an Indian subsidiary of your foreign company. Plan incorporation, parent company documents, banking and FEMA reporting with Krystal7 Consultants.
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IncorporationOur view on how much authorised capital a foreign subsidiary in India should start with: why ₹15 lakh is the default, what a later SH-7 increase costs, and when a higher start is worth it.
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IncorporationEvery government charge in an Indian incorporation, proved with two real SPICe+ challans: nil MCA fee up to ₹15 lakh, ₹1,000 for the name, ₹143 for PAN and TAN, and stamp duty by state.
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CalculatorSeparate incorporation costs, operating runway and equity funding before approving an India setup budget.
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Cross-BorderHow a foreign partner sets up a joint venture company in India in 2026. It covers structures, FDI caps, Press Note 3, FEMA pricing, shareholders agreement limits, CCI thresholds, filings, exits and tax, with a 51:49 example.
Read the guide ↗
IncorporationHow the Registrar tests a proposed company name under section 4 and rules 8, 8A and 8B, how SPICe+ Part A and RUN work, how long a name stays reserved, and the rejection reasons we see most on our filings.
Read the guide ↗ServicePrivate Limited company registration in India with SPICe+, DIN, PAN and TAN in about 8 to 10 working days. Zero MCA fee up to INR 15 lakh capital.
See the service ↗
IncorporationHow a foreign director gets a Class 3 DSC for Indian company filings: the CCA rules, the documents, the video check, personal or organisation certificates, renewal, and when a founder needs no DSC at incorporation.
Read the guide ↗
IncorporationA Private Limited Company in India needs two members, so a foreign parent holds one share through a nominee. This guide covers Forms MGT-4, MGT-5 and MGT-6, who should be the nominee and the FEMA reports that follow.
Read the guide ↗ServiceLLP registration in India end to end: DSC, name approval, FiLLiP filing and the LLP agreement in 12 to 15 working days. Fixed fees, foreign partners welcome.
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IncorporationWhat makes a holding and subsidiary company in India under section 2(87): board control or more than half the voting power. It covers associates, layers, section 19, consolidation, the small company bar and FEMA.
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Cross-BorderWhat a foreign founder or director may do in India on a business visa or e Business visa, how long each stay lasts, the June 2026 FRRO rule change, payments, employment visa triggers, tax residency and PE.
Read the guide ↗ServiceOne Person Company registration in India: DSC, name approval and SPICe+ filing in about 8 to 10 working days. NRIs can register an OPC since April 2021.
See the service ↗
Cross-BorderHow a foreign company opens and runs a liaison office in India in 2026: the three year profit and USD 50,000 net worth test, AD bank or RBI approval, permitted work, AAC by 30 September, Form 162, PE risk and closure.
Read the guide ↗
Cross-BorderWho needs an employment visa in India, the INR 16.25 lakh salary floor, documents the Indian company signs, validity, FRRO registration under the 2025 Rules, director cases, tax, PF and the compounding fees for getting it wrong.
Read the guide ↗ServiceRegister your Public Limited Company in India with Krystal7 Consultants. Professional PLC registration services with expert guidance and compliance support.
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Cross-BorderHow an employer of record works in India, where the PE, FEMA, labour code and IP risks sit, an illustrative cost model at 5, 15 and 40 employees, and when and how to move staff into your own subsidiary.
Read the guide ↗
IncorporationHow a foreign national becomes a director of an Indian company in 2026: the 182 day resident director rule, DIN through SPICe+ or DIR-3, apostille by country, DSC by video, DIR-12 in 30 days and the new three year KYC.
Read the guide ↗
IncorporationA foreign owned Indian company cannot trade or borrow until every subscriber has paid and INC-20A is on record. See the order of bank account, remittance, FC-GPR and INC-20A, the penalties and the strike off risk.
Read the guide ↗
Cross-BorderHow a foreign owned Indian subsidiary declares and pays a dividend in 2026, with Companies Act steps, the FEMA position, 20 percent or treaty withholding, Forms 41, 145 and 146, and a worked INR 10 crore example.
Read the guide ↗
IncorporationA wholly owned subsidiary in India gives a parent full beneficial ownership of a separate Indian company. The ownership must comply with foreign investment rules and the company's member requirements. Control also needs clear board authority, signing limits and access to reliable records.
Read the guide ↗
IncorporationThe structure, steps, licences, costs and transfer pricing model for a foreign parent setting up an Indian software subsidiary or dev center.
Read the guide ↗
IncorporationHow a foreign parent sets up an Indian manufacturing entity: FDI route, the licence map by authority, honest timelines and the tax position in 2026.
Read the guide ↗
IncorporationThe FDI position, registration steps, environmental and safety licence map, and costs for foreign investors entering India's chemical sector.
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Cross-BorderThe five types of India advisers compared honestly for foreign founders: who each suits, the questions that expose a bad fit, real fee ranges, and where Krystal7 Consultants fits.
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Country GuidesForeign subsidiary registration in India creates an Indian company controlled by an overseas parent. The work includes an investment review, overseas documents, incorporation and the steps needed to fund and operate the company. Registration alone does not complete bank onboarding or foreign investment reporting.
Read the guide ↗
Country GuidesThe questions global founders actually ask before an India entry: what FEMA compliance means, who is responsible, how registration works from abroad, what it honestly costs, and the calendar that follows.
Read the guide ↗
IncorporationYes, a foreign-owned Private Limited company can register on Udyam. The revised thresholds, the portal steps, and what changes when the entity has FDI.
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IncorporationThe SPICe+ form on the MCA portal, part by part: name reservation, the Part B fields that cause resubmissions, linked forms, 2026 fees and stamp duty, documents and a realistic timeline.
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IncorporationThe right company registration provider for a foreign founder should assess the investor and proposed activity before quoting the filing. Compare the full scope through banking and investment reporting, the people responsible and the recurring compliance work. A certificate alone does not show that the business is ready to operate.
Read the guide ↗
IncorporationForeign founders can register a company in India, subject to the proposed activity, investment route and ownership checks. Decide whether you will invest personally or through an existing overseas company before preparing documents. A parent company should use the foreign subsidiary registration service to plan its corporate ownership and reporting.
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IncorporationThe truth about top rated online company registration services in India for 2026: how rankings are made, real costs, 8 to 10 working day timelines, and how to actually choose.
Read the guide ↗
Cross-BorderChoosing your India entry route in 2026: subsidiary, branch, LO or LLP compared on control, tax, FEMA and speed, with a decision framework for founders.
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Cross-BorderHow India's Production Linked Incentive schemes work in 2026, which sectors they cover, what Uttar Pradesh and Tamil Nadu add, how incentives are taxed under the Income Tax Act, 2025, and a checklist for a foreign manufacturer.
Read the guide ↗
IncorporationWho qualifies for DPIIT startup recognition under the February 2026 notification, why a foreign subsidiary does not, how to apply on NSWS, the benefits, the section 140 tax holiday and the usual rejection reasons.
Read the guide ↗
Cross-BorderHow CBIC's AEO programme works in India: the four tiers, eligibility, benefits, monthly deferred duty from 1 Mar 2026, mutual recognition, the application and whether a foreign owned subsidiary should apply.
Read the guide ↗
IncorporationHow an Indian company issues shares to foreign investors by private placement under section 42 and rule 14, with PAS-4, the 200 person limit, deadlines, FEMA pricing and FC-GPR.
Read the guide ↗
Cross-BorderWhich countries have a social security agreement with India, how a certificate of coverage exempts posted workers, how EPFO issues one for Indian staff going abroad, totalisation, PF withdrawal and the 2026 scheme.
Read the guide ↗
Cross-BorderBengaluru, Hyderabad, Pune or Gurugram for a foreign tech subsidiary: talent, office costs, state IT and GCC policies, professional tax, shops and establishments law, lease stamp duty and a decision table.
Read the guide ↗
Cross-BorderHow the Budget 2026 data centre tax holiday works under Schedule IV serial 13C, what changed in August 2026, the 15 percent safe harbour, infrastructure status, state policies, power, DPDP localisation and the FDI route.
Read the guide ↗
IncorporationWhat the memorandum and articles of a foreign owned Indian subsidiary must contain under sections 4 and 5, what Table F leaves out, the clauses a foreign parent should add, signing in SPICe+, and how to alter them later.
Read the guide ↗
Cross-BorderTEPA has applied between India and Switzerland, Norway, Iceland and Liechtenstein since 1 Oct 2025. Tariff cuts, origin proof, the investment goal and how it sits with the DTAAs.
Read the guide ↗
Cross-BorderHow a foreign group sets up in GIFT IFSC: the IFSCA framework, funds, banking units, leasing, fintech and in house centres, the section 147 tax holiday, currency, FEMA status, approvals, and a Singapore and Dubai comparison.
Read the guide ↗
Cross-BorderThe 6 Feb 2026 India US framework, the 2025 tariff escalation to 50 percent, what changed after the Supreme Court ruling, and the transfer pricing and customs effects for an Indian subsidiary.
Read the guide ↗
Cross-BorderWho must register with the FRRO, the 14 day deadline under the Immigration and Foreigners Rules, 2025, e FRRO steps, documents, the certificate of registration, address changes, departure, penalties and the employer's duties.
Read the guide ↗
Cross-BorderHow a startup moves its holding company from the US or Singapore to India, comparing the inbound merger, share swap and share purchase routes, with FEMA approvals, pricing, shareholder tax, timelines and lessons.
Read the guide ↗
Cross-BorderThe India EU FTA was concluded on 27 Jan 2026 but is not yet signed or in force. Tariff cuts by sector, the origin rules, services and what it does not change for an EU parent.
Read the guide ↗
IncorporationHow Indian private companies issue sweat equity shares under section 54 and rule 8, with limits, valuation, lock in, FEMA rules for non residents, tax as a perquisite and ESOP comparison.
Read the guide ↗
Cross-BorderHow a foreign company sets up an SEZ unit in India: Form F, the Letter of Approval, the bond, net foreign exchange, tax after the section 10AA sunset, GST zero rating, IT units, exit and the 2025 and 2026 reforms.
Read the guide ↗
IncorporationThe documents, beneficial owner checks and foreign director KYC an Indian bank needs for a new subsidiary, how share capital should arrive, the FIRC and FC-GPR link, EEFC rules and a realistic timeline.
Read the guide ↗
Cross-BorderHow a foreign owned Indian company gets an Importer Exporter Code from DGFT, when service exporters need one, the April to June update, deactivation, and the links to customs, GST and FEMA export reporting.
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Cross-BorderHow a foreign parent seconds staff to an Indian subsidiary: the agreement, the real employer test, GST after Northern Operating Systems, PE and TDS after Centrica, payroll and provident fund, with a checklist.
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IncorporationEvery Indian company needs one director who stays in India for 182 days in the financial year. How foreign groups fill the seat, the forms, the liability, the first year rule and the section 172 penalty.
Read the guide ↗
Cross-BorderHow a foreign group sets up a global capability centre in India, from entity choice and cost plus pricing to the 15.5 percent safe harbour, SEZ or STPI, GST on exports, PE risk, payroll and the yearly filings.
Read the guide ↗
FEMA & RBIIndia has no direct conversion of a branch or liaison office into a subsidiary. Here are the steps in order, from incorporation and asset transfer at book value to GST, staff, AD bank closure, Form FC-2, PAN and TAN.
Read the guide ↗
FEMA & RBIHow the Overseas Investment Rules and Regulations 2022 work for an Indian company that sets up or buys a foreign entity in 2026: ODI vs OPI, the 400 percent limit, Form FC and UIN, the two layer rule, APR and late fees.
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FEMA & RBIHow a foreign company opens and runs a branch or project office in India in 2026: the eight permitted activities, the profit and net worth test, AD bank approval, the 35 percent tax rate, AAC, FC-3, profit remittance and closure.
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FEMA & RBISOFTEX stopped applying to software exports invoiced from 1 October 2026, when FEMA 23(R)/2026-RB came into force. What to do with September invoices, how the monthly EDF replaces the form, and the nine month realisation rule.
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FEMA & RBISince 1 October 2026 every exporter of services and software files a monthly Export Declaration Form (EDF) under FEMA. Who files it, where, the due dates, the nine month realisation rule and what a missed EDF costs.
Read the guide ↗
FEMA & RBIThe legal line between FDI and FPI in India: the NDI Rules 10 percent test, SEBI registration, reclassification within five trading days, tax under the Income Tax Act, 2025, reporting and the right route for a foreign parent.
Read the guide ↗
FEMA & RBIHow FEMA prices shares issued or transferred to non residents in 2026: rule 21 floor and ceiling, who values, DCF, the 90 day report, CCPS and CCD conversion, swaps, angel tax after its repeal, and rule 57 under the Income Tax Act, 2025.
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FEMA & RBIHow an Indian company files PAS-3 when a foreign investor takes shares: the 30 and 15 day clocks, attachments by route, fees, the order with FC-GPR, penalties and fixing a missed return.
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FEMA & RBIWhat RBI purpose codes are, what P0802 and P0807 mean after SOFTEX ended on 1 Oct 2026, the codes for service exports, FDI and payments to a foreign parent, and how to fix a wrong code with your bank.
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FEMA & RBIHow shares of an Indian Private Limited company move between a resident and a non resident in 2026: FEMA pricing, SH-4 and demat, stamp duty, FC-TRS within 60 days, deferred payment, capital gains, TDS and treaties.
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FEMA & RBIWhat a FIRC and an eBRC are, how to get each from your bank and the DGFT portal, the GST refund link, the 2026 FEMA export rules with EDF and nine month realisation, and fixes for missing certificates.
Read the guide ↗
FEMA & RBIHow an EEFC account works for a foreign owned Indian company or exporter in 2026: the 100 percent credit rule, permitted debits, the monthly conversion rule, interest, GST refunds, worked examples and a checklist.
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FEMA & RBIHow a foreign parent lends to its Indian subsidiary under the 2026 ECB rules: who can lend, the USD 1 billion limit, end uses, Form ECB 1 and ECB 2, late fees, withholding tax and transfer pricing.
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FEMA & RBIHow an Indian subsidiary runs a section 62(1)(a) rights issue for its foreign parent in 2026: offer periods, FEMA pricing on renounced shares, demat, PAS-3 and FC-GPR within 30 days, with a worked example.
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FEMA & RBIWho files the Annual Performance Report for overseas direct investment, the 31 December due date, when unaudited accounts are allowed, how AD banks file it in 2026, and the flat INR 7,500 late fee.
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FEMA & RBIA practical guide for foreign founders on identifying FDI automatic route sectors in India, understanding when government approval applies, and what to confirm before incorporating or accepting investment.
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FEMA & RBIForm FC-GPR, also written FCGPR: what it reports, the 30 day clock from allotment, the FIRMS portal steps through your AD bank, the certificates the form needs, and what a late filing costs.
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FEMA & RBIA practical guide for foreign founders on FDI reporting requirements in India, covering when RBI reporting applies, which filings to prepare, common mistakes, and when to bring in a compliance advisor.
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FEMA & RBIEvery legal route from an Indian subsidiary to its foreign parent with 2026 rates: dividends under treaty, royalties, buyback after April 2026, and the filings banks actually check.
Read the guide ↗
FEMA & RBIA step by step guide for foreign investors allotting shares in an Indian company: FEMA and Companies Act requirements, Automatic versus Approval Route, FMV pricing under FEMA valuation norms, FC-GPR filing on the FIRMS portal, and the post allotment compliance calendar covering PAS-3, annual return, and FLA.
Read the guide ↗
FEMA & RBIA practitioner walkthrough of FEMA compounding under the 2024 Rules: PRAVAAH filing, the INR 10,000 fee, penalty caps and the 180 day order timeline.
Read the guide ↗
FEMA & RBIThe full FDI compliance map for foreign owned companies in India: FC-GPR, FCTRS, FLA, sectoral caps and the penalties for getting reporting wrong.
Read the guide ↗
FEMA & RBIFC-GPR and FC-TRS are the two FEMA forms every foreign investor in an Indian company eventually meets. This guide sets out the difference between them in one table, explains when each applies, the 30 and 60 day filing clocks, and how to file correctly on the FIRMS portal.
Read the guide ↗
FEMA & RBIFC-GPR filing for foreign investment in India: the 30 day timeline, FIRMS portal steps, documents, LSF for delays and how to file without rejections.
Read the guide ↗
FEMA & RBILate or defective FC-GPR? Understand LSF regularisation versus compounding under the 2024 FEMA Rules, the PRAVAAH process, fees and timelines.
Read the guide ↗
FEMA & RBIHow Indian exporters net export receivables against import payables with the same overseas buyer, supplier or their group companies under FEMA, with the AD bank's role, EDPMS and IDPMS closure, write off limits and documents.
Read the guide ↗
FEMA & RBIHow FEMA treats OCI cardholders who invest in or direct Indian companies, with repatriation and non repatriation routes, FEMA and tax residence, DIN and KYC, Press Note 3, property and bank accounts.
Read the guide ↗
FEMA & RBIHow RBI computes the late submission fee for delayed FC-GPR, FC-TRS, LLP, ODI, FLA and ECB filings, the three year window, the cap, how to pay, the 2026 ECB changes and when compounding takes over.
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FEMA & RBIHow foreign partners invest in an Indian LLP under Schedule VI of the NDI Rules, with the sector test, designated partners, pricing, Form LLP(I) and LLP(II), conversion, tax and when an LLP fits.
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FEMA & RBIHow a foreign company merges into an Indian company under section 234 and rule 25A, the 2024 fast track for a foreign parent and its subsidiary, FEMA deemed approval, two year windows, tax and stamp duty.
Read the guide ↗
FEMA & RBIHow an Indian company pays a foreign supplier or its parent in advance for goods or services under the FEMA import rules in force from 1 Oct 2026, with guarantees, IDPMS, time limits and repatriation.
Read the guide ↗
FEMA & RBICase note on published RBI compounding orders for late FC-GPR, ARF and FC-TRS reporting and late share issues, with the amounts RBI charged, the compounding matrix, the late submission fee route and what to do now.
Read the guide ↗
FEMA & RBIHow rule 9(6) of the NDI Rules lets buyers and sellers defer, escrow or indemnify up to 25 percent of the price for 18 months, and how pricing, FC-TRS, escrow accounts, TDS and capital gains timing work.
Read the guide ↗
FEMA & RBIHow foreign investors fund Indian companies with CCDs, CCPS, warrants and convertible notes, with the NDI Rules, conversion pricing, coupons, tax, FC-GPR, Form CN and company law steps.
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FEMA & RBIThe time limit to realise and repatriate export value under FEMA for goods and services, the 2025 and 2026 changes, EDPMS, extension, set off, reduction and write off, and the GST refund consequences.
Read the guide ↗
FEMA & RBIHow rule 23 of the NDI Rules treats investment by a foreign owned or controlled Indian company, with the ownership and control tests, caps, pricing, the funds rule, Form DI and the annual auditor certificate.
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FEMA & RBIWhen an Indian company or foreign owned subsidiary must hold a Legal Entity Identifier under RBI rules for cross border payments, bank loans, forex deals and RTGS, and how to get and renew one.
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FEMA & RBIWhat Press Note 3 (2020) requires, the seven countries it covers, the 2026 beneficial owner test, the 10 percent automatic route, DPIIT reporting, approval timelines and the filing steps.
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FEMA & RBIHow an Indian subsidiary turns a foreign parent loan, ECB interest, import payables or pre incorporation costs into shares, with the Companies Act route, FEMA conditions, pricing, filings, tax and a worked example.
Read the guide ↗
Transfer PricingA practical guide for foreign founders on India's safe harbour rules for transfer pricing, covering when they apply to related party transactions, how they fit into compliance, and what to check before relying on them.
Read the guide ↗
Transfer PricingWho files Part A and Part B of Form 56, when an Indian subsidiary files Form 58 or the CbC report itself, the 2026 and 2027 due dates, penalties under sections 442 and 459, and two worked examples.
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Transfer PricingA practical guide for foreign founders on when Form 3CEB applies to an Indian entity, what to prepare for the chartered accountant, and how to avoid missed portal actions around transfer pricing reporting.
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Transfer PricingThe six prescribed methods under section 165 of the Income-tax Act, 2025 (formerly section 92C) with a worked example of each, the 1 to 3 percent tolerance range, safe harbour, and Form 3CEB documentation.
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Transfer PricingA practical guide for foreign founders on transfer pricing documentation requirements in India, covering local file, master file, intercompany agreements, benchmarking, and when to bring in an advisor for an Indian subsidiary.
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Transfer PricingCase note on the Delhi High Court rulings that decide management fee disputes for Indian subsidiaries: benefit, duplication, shareholder costs, allocation keys, aggregation, the 2026 safe harbour and the documents that win.
Read the guide ↗
Transfer PricingHow India taxes a management fee paid to a UAE parent: no FTS article in the treaty, PE risk, TDS and Forms 145 and 146, reverse charge GST, the benefit test, disallowance risks and UAE corporate tax, with a worked example.
Read the guide ↗
Income Tax & TDSHow an Indian company claims credit for tax withheld abroad in 2026: rule 128 and Form 67 for AY 2026-27, rule 76 and Forms 44 and 45 from tax year 2026-27, due dates, documents, disputes and worked examples.
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Income Tax & TDSHow India's General Anti Avoidance Rule works for foreign groups in 2026: Chapter XI of the Income Tax Act, 2025, the INR 3 crore test, grandfathering, the Approving Panel, PPT and LOB, and the substance file.
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Income Tax & TDSHow the India Netherlands DTAA taxes a Dutch company in 2026: 10 percent rates, the MFN clause after Nestle SA, share sales under Article 13(5), PE without a service clause, the MLI and Form 41.
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Income Tax & TDSHow the India Mauritius DTAA taxes a Mauritius company in 2026: treaty rates, source taxation of share gains after the 2016 protocol, grandfathering, Article 27A, the 2024 PPT protocol, Tiger Global, TRC and substance.
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TaxHow the India Singapore DTAA taxes a Singapore company in 2026: treaty rates, the make available test, capital gains after 2017, Article 24A, the MLI principal purpose test, PE triggers, Form 41 and substance.
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Income Tax & TDSWhen a foreign company becomes tax resident in India under POEM in 2026: section 6(10), CBDT Circular 6 of 2017, the active business test, the INR 50 crore threshold, founder risk and the tax cost.
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Income Tax & TDSHow India taxes RSUs and ESOPs that a foreign parent grants to staff of its Indian subsidiary in 2026: perquisite value under rule 15, TDS, cross charges, FEMA, capital gains, Schedule FA and Form 44.
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Income Tax & TDSHow the India Germany DTAA taxes a German company in 2026: the flat 10 percent rates, managerial fees, the missing service PE rule, capital gains, the MLI position, the Nestle MFN ruling and Form 41.
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Income Tax & TDSHow a foreign company gets a lower or nil TDS certificate in Form 128 under section 395 and rule 213: who can apply, documents, how the officer sets the rate, validity, the payer's Form 144 entry, and a UK SaaS example.
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Income Tax & TDSWhich return a foreign owned company in India files, the extended AY 2026-27 due dates, the ITR-6 schedules foreign owners trigger, the 22 percent regime and MAT credit choice, late filing costs and the move to the 2025 Act.
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Income Tax & TDSHow a foreign company or foreign national gets an Indian PAN in 2026: Form 96 and Form 95 replace Form 49AA, the apostilled registration certificate, fees, the Indian representative, rule 217 relief from higher TDS, and two worked examples.
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Income Tax & TDSHow an Indian subsidiary or a foreign company gets a TAN under section 397 of the Income Tax Act, 2025: Forms 134 and 135, rule 216 timing, documents, the INR 10,000 penalty, and the TDS work that follows.
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Income Tax & TDSHow the India UAE DTAA taxes a UAE company in 2026: who counts as a UAE resident, treaty rates, technical fees without an FTS article, free zone companies, capital gains, the MLI principal purpose test, PE, UAE corporate tax and documents.
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Income Tax & TDSHow the India UK DTAA taxes a UK company in 2026: Articles 11 to 14 rates, the make available test, service PE day counts, capital gains under Indian law, the MLI principal purpose test and Form 41.
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Income Tax & TDSHow the India US tax treaty taxes a US company in 2026: dividend, interest and royalty caps, fees for included services and the make available test, service PE, Article 24 LOB, capital gains, Form 41 and Form 6166.
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Income Tax & TDSWhat a non resident needs to claim treaty rates in India in 2026: the foreign TRC, Form 41 (old Form 10F) filed online, PAN or rule 217 details, validity rules, and Forms 42 and 43 for an Indian company's own TRC.
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Income Tax & TDSSection 63 of the Income Tax Act, 2025 keeps the INR 1 crore and INR 10 crore tax audit limits. See who needs an audit, the FY 2025-26 forms and dates, Form 26 from tax year 2026-27 and the new flat fee.
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Income Tax & TDSA section and form map from the 1961 Act to the Income Tax Act, 2025 for foreign owned subsidiaries, with the FY 2025-26 transition rule, tax year 2026-27 due dates and the 2026 MAT change.
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Income Tax & TDSA practical guide for foreign founders on how permanent establishment risk arises in India through employees, contracts, offices, and vendors, and how to structure India activity to reduce that exposure before scaling up.
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Income Tax & TDSForms 15CA and 15CB became Forms 145 and 146 on 1 Apr 2026. The four parts of Form 145, the rule 220 exemptions, treaty claims, portal steps, penalties and a worked royalty example.
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Income Tax & TDSThe corporate tax rate in India for foreign companies is 35 percent plus surcharge and cess. Full rate table with effective rates, DTAA withholding relief and the subsidiary comparison.
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Income Tax & TDSHow an Indian company deducts tax on royalty, fees, interest and dividends paid abroad in 2026, with section 393 and 207 rates, treaty rates for eight countries, rule 217, Forms 41, 128, 144 and 131, and a US example.
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TaxFor a foreign owned subsidiary, GST is not just registration, it is export refunds, reverse charge and a monthly filing rhythm. Here is a ranked, honest 2026 guide and who each firm suits.
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TaxCross border tax for founders in India: permanent establishment risk, withholding tax, treaty relief and transfer pricing, explained for 2026.
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TaxWhen minimum alternate tax applies to foreign companies and Indian subsidiaries: section 115JB and section 206, the 14 percent final MAT, book profit, the foreign company exclusions, MAT credit and the section 200 choice.
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TaxHow the single tax year in section 3 of the Income Tax Act, 2025 replaces previous year and assessment year from 1 Apr 2026, how returns, advance tax, TDS and assessments are labelled, and how FY 2025-26 income is handled.
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TaxWhy angel tax under section 56(2)(viib) ended from AY 2025-26, which old share issues to foreign investors are still exposed, and the FEMA, Companies Act and income tax rules that still apply.
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TaxAdvance tax for companies in India: the four due dates, the INR 10,000 threshold, section 405 computation, interest under sections 424 and 425 (old 234B and 234C), online payment and a cost plus example.
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TaxThe history of India's equalisation levy, the end of the 2 percent e commerce levy on 1 Aug 2024 and the 6 percent advertising levy on 1 Apr 2025, and the income tax, withholding and GST rules that now apply.
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TaxHow the India Canada DTAA taxes a Canadian parent and its Indian subsidiary: dividend, interest and royalty caps, fees for included services, the related enterprise service PE, capital gains, the MLI and the papers.
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TaxHow the India Australia DTAA taxes an Australian parent and its Indian subsidiary: 15 percent dividends and interest, the royalty bands, management fees, the 183 day service PE, section 11J and ECTA.
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TaxWhen a foreign company is taxable in India: business connection under section 9 of the Income Tax Act, 2025, the INR 2 crore and 3 lakh user SEP tests, agents, treaty PE override, digital businesses and a decision table.
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TaxThe rates, holding period, withholding, treaty exemptions for Mauritius, Singapore and Netherlands sellers, buyer side fair value rules and FEMA reporting when a non resident sells unlisted Indian shares.
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TaxWhat Union Budget 2026 and the Finance Act, 2026 changed for foreign owned Indian companies and non residents: MAT, buy back tax, withholding, transfer pricing, new exemptions, customs, GST and FEMA.
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TaxHow India's thin capitalisation rule works for Indian subsidiaries: section 94B and section 177, the INR 1 crore trigger, the 30 percent of EBITDA cap, guarantees, exclusions, parent ECBs and the carry forward.
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TaxCase note on AAR v Tiger Global International II Holdings (2026 INSC 60): the facts, the order, grandfathering under Article 13(3A), TRCs, GAAR and what Mauritius and Singapore holding structures should do now.
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TaxHow India decides the tax residency of a foreign employee: the 182 day and 60 plus 365 day tests, not ordinarily resident status, salary for work in India, the 90 day and treaty short stay exemptions, and the papers.
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TaxHow the India France DTAA taxes a French parent and its Indian subsidiary: the 10 percent rates, the MFN clause after Nestle SA, technical fees, PE, the 10 percent share rule, the MLI and Form 41.
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TaxHow an Indian subsidiary buys back shares from its foreign parent under section 68, prices the buyback under FEMA, files FC-TRS, and withholds tax now that buybacks are capital gains again.
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TaxCase note on AO v Nestle SA (2023 INSC 928): why MFN clauses in India's treaties need a notification, what Switzerland, the Netherlands and France did next, and the dividend rates that apply today.
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TaxHow the India Japan DTAA taxes a Japanese parent and its Indian subsidiary: the 10 percent rates, the wide technical fee definition, JBIC and NEXI interest, PE, capital gains, the MLI and Form 41.
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TaxHow Form 27Q works for TDS on payments to non residents, what goes into it, the 31 July to 31 May due dates, Form 131, corrections, late fee and penalty, and the switch to Form 144 under the Income Tax Act, 2025.
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