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Can i enter into JV to avoid tax. Suppose Party A and B have contract and party C helps in execution of contract between A&B. B&C are in agreement(Not Tri-party) C has nothing to do with A. Now Payments from A to B are taxable and paid after tax. However, C is of opinion that they should receive payments from B without any withholding taxes since tax is already been held by A. Is it possible that B&C enter into JV. How to solve double taxation. Expert advice
As per my understanding C has nothing to do with A but has link with B. To avoid double taxation, it is possible that B&C should enter into jointly controled operations, this will not only help in avoiding double taxation, it will also alow both the companies to claim withholding tax on their payments received from A. Further, both the investors will have control over their assets and liabilites and they will maintain their own books of accounts.
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