Tax paid in India and abroad

Tax queries 528 views 3 replies

Guest

Assessee was sent to Bhutan by his employer, an Indian Hotel, to work in their Bhutanese branch. The Assessee's name is included in the employee rolls of the Hyderabad hotel of the Indian employer and tax is deducted at source from his salary by the Hyderabad office. However, the assessee pays tax in Bhutan, for which there is documentary evidence.
The assessee being a non-resident, rendering service outside India, can refund be claimed for tax deducted at source in India by the Hyderabad Office?
There is no DTAA with Bhutan.

Replies (3)

Amir

Learner

4016 Points Posted on 26 January 2010

Dear Aruna,

Your query is not clear, If assessee is getting salary from hyderabad office then how can tax be paid in Bhutan & vice a versa..

Plz explain whether any Income was taxable in Bhutan or not??

sudhir rawal

B.COM/PCC/ARTICLE/'O'LEVEL

319 Points Posted on 26 January 2010

dear arun amir is right first be clear with your question

Guest

Bhutanese Income Tax was actually paid by assessee in Bhutan for salary received for services rendered there.

Though the assessee was employed by the Hyderabadi office and they were paying his salary, he was working in the Bhutan branch.

So not only has he paid tax to the Bhutanese tax authorites, the Hyderabad Office has deducted tax at source from salary according to our Indian Income Tax Act, resulting in double taxation.

I hope it is more clear now. If not, please let me know. Thanks