16 October 2012
Their is a foreign company which provide service to indian company and indian company deduct TDS at excess rate. so now their is refund arising for foreign company. Now i wana to know, how foreign company claim refund from IT dept (foreign company also doesnot have any bank account in India) Can foreign company take Tax credit while filling their return in their company agt refund amount
It depends upon the DTAA of India with that country. In majority cases, foreign companies not filing ITR in India can claim benefit of withholding tax in their respective country and hence it can utilise the TDS deducted by Indian party.
16 October 2012
Dear Mr Manish Thanks for your rply company fall in DTAA with Japan and according to this, that foreign company also have to file return in India too for respective income from india So in this case While filling ITR in India, their is Refund will come in to Foreign company as TDS deducted in excess by indian company. So now how foreign company will claim this refund amount. and also in refund case, Bank MICR code is mandatory but foreign company does not have any Bank Account in India
CAclubindia
