Dear Sirs,
For example, we are the indian company having subsidiary companies in the following countries. While declaring dividends in these subsidiary companies, the withholding tax at the rates mentioned in each country is deducted.
Name of the Country Withholding tax on dividend
Indonesia 20%
Bangladesh 20%
Sri lanka 10%
As per the section 115BBD, 15% of tax on dividend income received from these countries is taxable in India.
Please let me know whether we can take tax credit of the withholding tax paid in these countries while paying the tax under section 115BBD. I want to know this on urgent basis. Please let me know sirs.
Regards
Srikanth.
CAclubindia
