Rule 43: Form 24 royalty and technical-fee audit
Rule 43 prescribes Form No. 24 for the audit report required under section 59(4). It concerns computation of royalty and fees for technical services for a non-resident other than a company, or a foreign company.
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Bare law
Rule 43 - Form of report of audit to be furnished under section 59(4) for computation of royalty and fee for technical services
The report of audit of accounts of a non-resident (not being a company) or a foreign company for computation of royalty and fee for technical services, which is required to be furnished under section 59(4), shall be in Form No. 24.
Rule breakdown
Check whether section 59(4) requires this report
Identify the taxpayer’s status and the income computation covered by section 59. Rule 43 applies where the audit report is required under section 59(4); the rule is not a blanket statement that every royalty recipient must file Form 24.
The stated taxpayer categories are a non-resident who is not a company and a foreign company. Keep the applicable parent provision alongside the form requirement.
Use the prescribed Form 24
The report of audit of accounts for this computation must be in Form No. 24. Match the current official form to Rule 43 and the relevant tax year.
A general audit report should not be assumed to replace the specifically prescribed report without checking the legal requirement.
Reconcile accounts with the income computation
Prepare the accounts and supporting computation relevant to the royalty and technical-service income. Reconcile receipts, contracts and claimed expenditure to the records used by the auditor.
The rule itself does not set a tax rate or determine whether a receipt is royalty. Those questions require the applicable Act provisions and, where relevant, treaty analysis.
Coordinate audit and filing requirements
Confirm the applicable statutory furnishing deadline and current official submission instructions before filing. Rule 43 identifies the form; it does not state a separate standalone deadline in its text.
Retain the completed report and filing acknowledgment with the computation and supporting records.
Key takeaways
Form 24
The prescribed report is Form No. 24.
Parent provision first
The requirement arises where section 59(4) applies.
No rate fixed here
This rule specifies the report form, not the tax rate.
Practical checklist
- Confirm section 59(4) applicability.
- Use the current official Form 24.
- Reconcile the audit report to the computation and retain acknowledgment.
Avoid
- Do not infer a tax rate from the form rule.
- Do not substitute a generic report without checking the requirement.
FAQs
Which report does Rule 43 prescribe?
Form No. 24 for the audit of accounts required under section 59(4).
Does every foreign royalty payment trigger this form?
The requirement must be checked under section 59(4) for the relevant taxpayer and computation; Rule 43 alone does not establish that every payment qualifies.
Does Rule 43 prescribe a separate filing date?
Its text prescribes the form. Check the applicable parent provision and current official filing requirements for timing.
Glossary
- Form 24
- The audit-report form prescribed by Rule 43 for section 59(4).
- Foreign company
- The taxpayer category expressly included in Rule 43, read with the Act’s definition.