Why do I need specialized accounting for my Indian subsidiary?

Indian subsidiaries (WOS) are subject to stringent Transfer Pricing rules to ensure parent-subsidiary transactions are at an arm's length. Furthermore, if you are a captive center, you must legally structure your service exports to claim zero-rated GST status (LUT). Domestic accountants often miss these nuances, resulting in heavy penalties.

Can you handle payroll for expatriate employees?

Yes. Expat taxation in India is highly complex. We handle tax equalization, DTAA (Double Taxation Avoidance Agreement) benefits, and coordinate payroll across both jurisdictions.

Do you provide MIS reporting in US GAAP or IFRS?

Yes. While statutory accounting in India must follow Indian GAAP (or Ind AS), we provide monthly mapping and consolidated MIS reporting tailored to your parent entity's reporting standards (US GAAP, UK GAAP, or IFRS).

Outsourced Accounting for Foreign Subsidiaries in India

The gap in domestic bookkeeping

When a foreign parent sets up a Wholly Owned Subsidiary (WOS) in India, the compliance burden multiplies. Treating the subsidiary like a standalone Indian SME is a critical mistake. Our partner CAs specialize in the cross-border bridge: ensuring total compliance with Indian corporate law while providing frictionless visibility to the parent board.

1. Transfer Pricing & Form 3CEB

Any transaction between the foreign parent and the Indian subsidiary—such as software development services, royalty payouts, or management fees—is an "International Transaction." Indian tax law requires these to be at an Arm's Length Price. We maintain robust transfer pricing documentation and file the mandatory Form 3CEB to prevent crippling scrutiny from the Income Tax department.

2. Export of Services & GST LUT

If your Indian subsidiary operates as a captive IT or engineering center, you are effectively "exporting services" to your parent company. We secure your Letter of Undertaking (LUT) so these invoices are zero-rated for GST, preventing working capital from being locked up. We also manage GST refund claims for accumulated input tax credits.

3. Repatriation & Section 195 TDS

Moving money out of India—whether as dividends, royalties, or interest on ECBs (External Commercial Borrowings)—is heavily regulated. Before your bank allows the outward remittance, we issue the mandatory Form 15CB (CA Certificate) and file Form 15CA, calculating the precise withholding tax under the relevant DTAA.

4. Global MIS & Reconciliation

Your Indian entity must maintain books in INR adhering to Indian GAAP / Ind AS for local statutory audits. However, we map your chart of accounts so your monthly reporting seamlessly plugs into your global ERP in your parent company's base currency (US GAAP / IFRS), complete with foreign exchange fluctuation accounting.

5. Comprehensive Payroll Administration

We run end-to-end payroll for your Indian workforce, ensuring compliance with Provident Fund (PF), Professional Tax (PT), and Employee State Insurance (ESI). For expat executives stationed in India, we handle complex tax equalization calculations and DTAA residency rules.