Form 24: Audit report under section 59 for royalty and fee for technical services of a non-resident or foreign company
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Audit report under section 59 for royalty and fee for technical services of a non-resident or foreign company.
The non-resident or foreign company obtains the prescribed accountant report where royalty or technical-service income is effectively connected with its Indian permanent establishment or fixed place of profession.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 3CE is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 43; Section 59(4), Section 59. Physical PDF pp 339-341; printed Gazette pp 1871-1873.
Rule 43 — connected rule text
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.
Completed field illustration
Fictional data, not for filing. An accountant-field model computes a fictional foreign company’s net royalty/service income on an assumed books basis.
| Form field / block | Completed fictional entry |
|---|---|
| Assessee / status / PAN | Example Overseas Technology Ltd / foreign company / synthetic ZZZCE0000Z |
| Tax year | 2026-27 |
| Indian PE / books location | 10 Model Road, Pune; assumed PE effectively connected with the royalty/service contracts |
| Books / software / accounting method | Cash book, bank book, general ledger; model accounting system; mercantile; no method change |
| Agreement date / property / payer | 1 April 2026 / pump-design know-how and engineering contract / Example Manufacturing Ltd, unrelated in the model |
| PE activity and contract connection | Indian PE provides the engineering and licensed know-how services, assumed effectively connected |
| Non-business / head-office allocation / reimbursement | Nil / Nil / Nil in this limited scenario |
| Royalty receipts | Rs 30,00,000 |
| Fee for technical services receipts | Rs 20,00,000 |
| Total receipts examined | Rs 50,00,000 |
| Assumed admissible expenditure | Rs 10,00,000 |
| Income after this assumed adjustment | Rs 40,00,000 |
| Books / evidence | Model agreement, invoices and expense ledger |
| Qualifications / accountant verification | Not an audit opinion; NOT SIGNED; no UDIN issued |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 30,00,000 + 20,00,000 = 50,00,000.
- 50,00,000 − 10,00,000 = 40,00,000.
Section 59 applicability, expense exclusions, treaty relief and tax rate are assumed outside this field demonstration; no tax liability is certified.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 43. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 24 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.