Ours is a liaison office of a Honkong company established since 1995 and having staffs strength of 22 nos with PF,Shop and Establishment Registeration,TAN,PAN Registeration.We would like to cover gratuity including past service from 1995 and approached LIC and Kotak life for etablish a policy for employees group gratuity ,in turn they advised us to get approval from IT department,when we met IT department ,chennai we does not have proper advise,AC asked us as a liaison office you are not filing any annual returns except TDS returns,how can we issue a letter for approval,its better to approach foreign taxation dept at Delhi.
In RBI's liaison office permission letter ,rbi clearly mentioned that while closure LO need to settle all statutory obligations like PF,Gratuity etc.In practical the foreign company does not have any fixed assets in india and anytime they can wind up and go,where will the staffs go without end of service benefits.
Need solution to proceed further
Bravebell
