Why US-Owned Companies Face a Unique Compliance Challenge
A US-owned private limited company in India operates under two regulatory regimes simultaneously. On the Indian side, you have the Ministry of Corporate Affairs (MCA), Income Tax Department, GST Network, Reserve Bank of India, and state-level authorities. On the US side, the IRS requires reporting of foreign subsidiary income under GILTI (Global Intangible Low-Taxed Income), Subpart F, and FATCA (Foreign Account Tax Compliance Act) provisions.
Missing an Indian deadline triggers automatic penalties — INR 100 per day for ROC filings, 1% per month for late GST returns, and 1% per month interest on delayed advance tax payments. Missing a US deadline can result in IRS penalties starting at USD 10,000 per information return. The compliance calendar below maps every critical deadline for FY 2026-27 (April 2025 to March 2026) with specific attention to US-parent obligations.
This calendar assumes your Indian subsidiary is a private limited company with foreign direct investment from a US parent, operating on the April-March Indian financial year. All deadlines are verified against current government notifications as of March 2026.
April 2025: Financial Year Opens
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 April | GSTR-1 for March (outward supplies) | GST Network | INR 50/day (max INR 5,000) |
| 20 April | GSTR-3B for March (summary return + tax payment) | GST Network | INR 50/day + 18% interest on tax due |
| 30 April | TDS/TCS return for Q4 (Jan-Mar) — Form 24Q, 26Q, 27Q | Income Tax Dept | INR 200/day under Section 234E |
| 30 April | Deposit of TDS deducted in March (for non-government deductors) | Income Tax Dept | 1.5% per month interest |
US-Side Action
If the US parent's tax year ended 31 December 2024, the US corporate income tax return (Form 1120) is due 15 April 2025 (or 15 October with extension). This return includes Form 5471 (Information Return of US Persons With Respect to Certain Foreign Corporations), which reports the Indian subsidiary's financials and triggers GILTI and Subpart F income calculations. Ensure your Indian subsidiary's Q4 financial data is available for the US tax team.
May 2025: LLP Annual Return Window Opens
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 May | GSTR-1 for April | GST Network | INR 50/day |
| 15 May | TDS/TCS deposit for April | Income Tax Dept | 1.5% per month interest |
| 20 May | GSTR-3B for April | GST Network | INR 50/day + 18% interest |
| 30 May | Form 11 (LLP Annual Return) — if applicable | MCA | INR 100/day |
Action Item
Begin preparation for the statutory audit. Appoint or reconfirm your statutory auditor at the AGM (if not already done for a 5-year term). Compile all financial records, bank statements, and inter-company transaction documentation for the auditor.
June 2025: First Advance Tax Installment
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 June | GSTR-1 for May | GST Network | INR 50/day |
| 15 June | Advance tax — 1st installment (15% of estimated annual tax) | Income Tax Dept | Interest under Sections 234B and 234C |
| 15 June | TDS/TCS deposit for May | Income Tax Dept | 1.5% per month interest |
| 20 June | GSTR-3B for May | GST Network | INR 50/day + 18% interest |
| 30 June | Form DPT-3 (Return of Deposits) | MCA | INR 100/day |
US-Side Action
If your US parent filed a tax extension, the extended deadline for Form 1120 (including Form 5471) is 15 October 2025. However, estimated tax payments are still due quarterly. FBAR (FinCEN Form 114) reporting — required if the Indian subsidiary's bank accounts have signing authority held by US persons — has an automatic extension to 15 October 2025 (original deadline 15 April).
July 2025: FLA Return and FATCA Reporting
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 July | GSTR-1 for June | GST Network | INR 50/day |
| 15 July | FLA Return (Foreign Liabilities and Assets) — based on unaudited accounts | RBI | INR 7,500 flat penalty |
| 15 July | TDS/TCS deposit for June | Income Tax Dept | 1.5% per month interest |
| 20 July | GSTR-3B for June | GST Network | INR 50/day + 18% interest |
| 31 July | TDS/TCS return for Q1 (Apr-Jun) — Form 24Q, 26Q, 27Q | Income Tax Dept | INR 200/day |
Critical: FLA Return
Every Indian company that has received FDI or has made outward direct investment must file the FLA Return with the RBI by 15 July. The original deadline was extended to 31 July 2025 in the previous year, but the standard deadline remains 15 July. File based on unaudited accounts initially; a revised return based on audited accounts is due by 30 September if figures change materially.
FATCA Compliance
Indian financial institutions where your subsidiary holds accounts are required to report account information of US persons under FATCA — India signed an IGA with the US on 9 July 2015. Ensure your subsidiary's bank has up-to-date FATCA self-declaration forms. Any change in beneficial ownership or control must be reported to the bank within 30 days.
August 2025: Mid-Year Compliance Check
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 August | GSTR-1 for July | GST Network | INR 50/day |
| 15 August | TDS/TCS deposit for July | Income Tax Dept | 1.5% per month interest |
| 20 August | GSTR-3B for July | GST Network | INR 50/day + 18% interest |
Action Item
Conduct a mid-year transfer pricing review. Verify that all inter-company transactions with the US parent are documented at arm's length prices. Common transactions that require transfer pricing documentation include: management fees, software licence fees, cost-sharing arrangements, and inter-company loans. If aggregate international transactions exceed INR 1 crore, Form 3CEB will be mandatory.
September 2025: AGM and Second Advance Tax
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 September | GSTR-1 for August | GST Network | INR 50/day |
| 15 September | Advance tax — 2nd installment (45% cumulative of estimated annual tax) | Income Tax Dept | Interest under Sections 234B and 234C |
| 15 September | TDS/TCS deposit for August | Income Tax Dept | 1.5% per month interest |
| 20 September | GSTR-3B for August | GST Network | INR 50/day + 18% interest |
| 30 September | Annual General Meeting (AGM) — must be held within 6 months of FY end | MCA | INR 1,00,000 on company + INR 5,000 on every officer in default |
| 30 September | DIR-3 KYC for all directors | MCA | INR 5,000 + DIN deactivation |
| 30 September | Revised FLA Return (if filed with unaudited data in July) | RBI | Discretionary RBI action |
AGM Requirements
The AGM must approve the annual financial statements, appoint or reappoint the statutory auditor, and declare dividends (if any). For a US-owned subsidiary, ensure the US parent (as shareholder) provides a duly authorized representative or proxy. Board composition must include at least one resident director who has stayed in India for 182+ days during the financial year.
October 2025: Tax Audit and Transfer Pricing Reports
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 October | GSTR-1 for September | GST Network | INR 50/day |
| 15 October | TDS/TCS deposit for September | Income Tax Dept | 1.5% per month interest |
| 20 October | GSTR-3B for September | GST Network | INR 50/day + 18% interest |
| 31 October | Tax audit report (Form 3CA/3CD) — if applicable | Income Tax Dept | 0.5% of turnover or INR 1,50,000 (whichever is less) |
| 31 October | Transfer pricing report — Form 3CEB | Income Tax Dept | INR 1,00,000 under Section 271BA |
| 31 October | TDS/TCS return for Q2 (Jul-Sep) — Form 24Q, 26Q, 27Q | Income Tax Dept | INR 200/day |
Critical: Transfer Pricing for US Parent Transactions
This is the most scrutinized area for US-owned Indian companies. The transfer pricing report (Form 3CEB) must be filed if aggregate international transactions with the US parent (or any associated enterprise) exceed INR 1 crore. Common transactions include:
- Management fees: Must be benchmarked using TNMM or CUP method
- Software/IP licences: Royalty rates must align with arm's length benchmarks
- Inter-company loans: Interest rates must reflect arm's length terms using CUP or credit rating-based approach
- Cost-sharing arrangements: Must demonstrate benefits received by the Indian entity
The India-US DTAA provides withholding rates of 15% on interest and royalties, and 15-25% on dividends. Ensure Form 15CA/15CB is filed before each outward remittance to claim treaty benefits.
US-Side Action
15 October 2025 is the extended deadline for US corporate tax returns (Form 1120) and Form 5471. Ensure the Indian subsidiary's audited financials are available in time for the US tax team to prepare GILTI calculations, Subpart F income analysis, and foreign tax credit claims.
November 2025: Income Tax Return Filing
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 November | GSTR-1 for October | GST Network | INR 50/day |
| 15 November | Income tax return (ITR-6) — for companies requiring audit | Income Tax Dept | INR 5,000 if filed after due date (INR 1,000 if income < INR 5 lakh) |
| 15 November | TDS/TCS deposit for October | Income Tax Dept | 1.5% per month interest |
| 20 November | GSTR-3B for October | GST Network | INR 50/day + 18% interest |
| 29 November | Form MGT-7 (Annual Return) — within 60 days of AGM | MCA/ROC | INR 100/day per form |
| 30 November | Form AOC-4 (Financial Statements) — within 30 days of AGM | MCA/ROC | INR 100/day per form |
ITR-6 Filing: US-Specific Considerations
When filing the Indian income tax return, US-owned subsidiaries must carefully handle:
- Section 115BAA election: If claiming the 22% concessional rate, file Form 10-IC before the return due date. This election is irrevocable once exercised.
- Section 195 compliance: All payments to the US parent — management fees, royalties, technical fees — must have TDS deducted at applicable rates (20% domestic or treaty rate, whichever is lower)
- Foreign tax credit: If the subsidiary has paid taxes in the US (or had US-source income), claim foreign tax credit in India using Form 67
December 2025: Third Advance Tax and GST Annual Return
Indian Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 December | GSTR-1 for November | GST Network | INR 50/day |
| 15 December | Advance tax — 3rd installment (75% cumulative of estimated annual tax) | Income Tax Dept | Interest under Sections 234B and 234C |
| 15 December | TDS/TCS deposit for November | Income Tax Dept | 1.5% per month interest |
| 20 December | GSTR-3B for November | GST Network | INR 50/day + 18% interest |
| 31 December | GSTR-9 (Annual GST Return) for FY 2024-25 | GST Network | INR 200/day (max 0.50% of turnover) |
Action Item
Begin year-end tax planning for the Indian subsidiary. Review inter-company pricing, assess advance tax liability for Q4, and coordinate with the US parent's tax team on GILTI projections. If the subsidiary plans to declare a dividend, calculate the withholding tax obligation under the India-US DTAA (15% for 10%+ shareholding, 25% otherwise).
January - March 2026: Year-End and Q4 Close
Key Deadlines
| Deadline | Filing | Authority | Penalty for Delay |
|---|---|---|---|
| 11 Jan/Feb/Mar | GSTR-1 (monthly) | GST Network | INR 50/day |
| 15 Jan/Feb/Mar | TDS/TCS deposit (monthly) | Income Tax Dept | 1.5% per month interest |
| 20 Jan/Feb/Mar | GSTR-3B (monthly) | GST Network | INR 50/day + 18% interest |
| 31 January | TDS/TCS return for Q3 (Oct-Dec) — Form 24Q, 26Q, 27Q | Income Tax Dept | INR 200/day |
| 15 March | Advance tax — 4th installment (100% of estimated annual tax) | Income Tax Dept | Interest under Sections 234B and 234C |
| 31 March | Financial year closes — cut off all transactions | All | N/A |
Year-End Checklist for US-Owned Companies
- Transfer pricing documentation: Finalize contemporaneous documentation for all inter-company transactions. India requires the documentation to be maintained by the specified date, not merely prepared at audit time.
- Board meeting: Ensure the 4th board meeting of the year is held before 31 March, maintaining the 120-day gap requirement. Minimum quorum includes the resident director.
- FEMA reconciliation: Verify all FC-GPR filings are complete for any share allotments during the year. Check that all outward remittances had proper Form 15CA/15CB certification.
- GST reconciliation: Match GSTR-2B data with your purchase records. Claim any pending Input Tax Credit before the September return filing deadline for the current year.
- Statutory records: Update all statutory registers — register of members, register of directors, register of charges — current through 31 March.
US-Specific Reporting Obligations: A Separate Calendar
Beyond Indian compliance, the US parent has its own reporting obligations related to the Indian subsidiary. These are often coordinated by the US tax team but require data from the Indian entity.
Form 5471 (Information Return of US Persons With Respect to Certain Foreign Corporations)
Filed with the US parent's corporate tax return (Form 1120). Reports the Indian subsidiary's income, balance sheet, and inter-company transactions. Required for any US entity that controls (more than 50%) a foreign corporation. Penalty for non-filing: USD 10,000 per annual accounting period.
GILTI (Global Intangible Low-Taxed Income)
Under Section 951A of the US Internal Revenue Code, the US parent must include the Indian subsidiary's GILTI in its US taxable income. GILTI is calculated as the subsidiary's tested income minus a deemed return on its tangible business assets (QBAI — Qualified Business Asset Investment). A high-deduction election under Section 250 can reduce GILTI inclusion by 50%, and foreign tax credits from Indian taxes paid can offset the US tax. The effective US tax on GILTI can be reduced to near zero with proper planning if the Indian subsidiary's effective tax rate exceeds 13.125%.
Subpart F Income
Certain categories of the Indian subsidiary's income — including passive income (interest, dividends, rents), sales income from related-party transactions, and services income — may be classified as Subpart F income and included in the US parent's taxable income regardless of whether it is distributed. Proper structuring of inter-company transactions can minimise Subpart F exposure.
FBAR (FinCEN Form 114)
If any US person has signature authority over the Indian subsidiary's bank accounts with aggregate balances exceeding USD 10,000 at any point during the year, an FBAR must be filed. The original deadline is 15 April, with an automatic extension to 15 October. Penalties for willful non-filing can reach USD 100,000 or 50% of account balance.
FATCA Reporting
Indian financial institutions are required to report accounts held by US persons to the Indian tax authority, which shares this information with the IRS under the India-US IGA (Inter-Governmental Agreement) signed on 9 July 2015. The US parent should ensure its FATCA self-declaration forms with Indian banks are current and accurate.
Penalty Summary: What Non-Compliance Actually Costs
| Filing | Penalty for Late/Non-Filing | Typical Cost of Delay (6 months) |
|---|---|---|
| ROC Annual Return (MGT-7) | INR 100/day, no cap | INR 18,000 |
| ROC Financial Statements (AOC-4) | INR 100/day, no cap | INR 18,000 |
| Income Tax Return (ITR-6) | INR 5,000 late fee + interest | INR 5,000 + 1% per month on tax due |
| Transfer Pricing Report (3CEB) | INR 1,00,000 flat | INR 1,00,000 |
| FLA Return | INR 7,500 flat | INR 7,500 |
| GST Returns (GSTR-1/3B) | INR 50/day per return | INR 9,000 per return |
| TDS Returns | INR 200/day | INR 36,000 |
| DIR-3 KYC | INR 5,000 + DIN deactivation | INR 5,000 + operational disruption |
| Form 5471 (US) | USD 10,000 per year | USD 10,000 |
| FBAR (US) | Up to USD 12,500 (non-willful) | USD 12,500 |
Key Takeaways
- Indian subsidiaries of US companies face 50+ annual filing deadlines — including monthly GST returns, quarterly TDS returns, annual ROC filings, and FEMA reports, plus US-side reporting through Form 5471, GILTI, and FBAR
- October-November is the peak compliance period — tax audit report, transfer pricing report, income tax return, and ROC annual filings all fall within a 45-day window, requiring coordinated effort from your CA, CS, and US tax team
- GILTI planning can reduce US tax on Indian income to near zero — if your Indian subsidiary's effective tax rate exceeds 13.125% (which it will under Section 115BAA at 25.17%), proper Section 250 elections and foreign tax credit claims can effectively eliminate additional US tax on Indian subsidiary earnings
- Transfer pricing is the highest-risk area — with penalties of 2% of transaction value for non-documentation plus potential 100-300% penalties on adjustments, ensuring arm's length pricing and contemporaneous documentation is the single most important compliance priority
- Invest in a compliance management system from day one — the cost of a professional compliance service (INR 50,000 to INR 2,00,000 per year) is a fraction of the cumulative penalty exposure from missed deadlines
For ongoing compliance support, explore our annual compliance service for Indian subsidiaries. US companies evaluating India market entry can find a complete setup guide in our USA country page, and for a broader view of compliance requirements, see our article on annual compliance for foreign-owned companies in India.
Frequently Asked Questions
How many compliance filings does a US-owned Indian subsidiary need to make annually?
A typical US-owned Indian subsidiary files 50+ filings per year: 12 GSTR-1 returns, 12 GSTR-3B returns, 4 TDS returns, 12 TDS deposits, 4 advance tax installments, 1 income tax return, 1 tax audit report, 1 transfer pricing report, 2 ROC forms, 1 FLA Return, 1 DIR-3 KYC, and the AGM — plus US-side filings including Form 5471, GILTI, and FBAR.
What is GILTI and how does it affect US-owned Indian subsidiaries?
GILTI (Global Intangible Low-Taxed Income) requires US parent companies to include their Indian subsidiary's tested income — minus a deemed return on tangible assets — in US taxable income. However, with proper planning, the effective US tax on GILTI can be reduced to near zero if the Indian subsidiary's effective tax rate exceeds 13.125%, which it does under Section 115BAA at 25.17%.
When is the FLA Return due for Indian companies with US investment?
The FLA Return is due by 15 July each year (with occasional RBI extensions to 31 July). It must be filed by every Indian company that has received foreign direct investment. The initial filing can be based on unaudited accounts, with a revised return based on audited figures due by 30 September.
What is the penalty for not filing Form 5471 with the IRS?
The penalty for failure to file Form 5471 (Information Return of US Persons With Respect to Certain Foreign Corporations) is USD 10,000 per annual accounting period. Additional penalties of USD 10,000 per month may apply if the failure continues after IRS notification, up to a maximum of USD 60,000.
Does the India-US DTAA reduce withholding tax on dividends from an Indian subsidiary?
Yes. Under the India-US DTAA, withholding tax on dividends is reduced to 15% if the US parent directly owns 10% or more of the voting stock (which is always the case for a subsidiary), compared to the domestic rate of 20%. Form 15CA/15CB must be filed before each dividend remittance to claim the treaty rate.
What happens if a US-owned Indian company misses the transfer pricing report deadline?
Failure to file Form 3CEB (transfer pricing report) by the due date attracts a flat penalty of INR 1,00,000 under Section 271BA. Additionally, if transfer pricing documentation is not maintained, a penalty of 2% of the value of each international transaction applies. Transfer pricing adjustments can also trigger penalties of 100-300% of the tax on the adjusted amount.
Is FBAR filing required for US officers of an Indian subsidiary?
Yes, if any US person (citizen, resident, or green card holder) has signature authority over the Indian subsidiary's bank accounts and the aggregate balance exceeds USD 10,000 at any point during the year, an FBAR (FinCEN Form 114) must be filed. The original deadline is 15 April with an automatic extension to 15 October. Non-willful penalties can reach USD 12,500 per violation.