Vat Deduction
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 June 2011
Mr. A has been in India since birth In A.S. Year 2011-12 he has been in India From 01.04.2010 to 28.02.2011 , then his India company/ employer send him to South Africa for work from 01.03.2011 to minimum for 1 year terms to maximum 2 years. In South Africa his employer cut TDS as per South Africa tax structure.
Now my querry is what rate of income tax applicable to Mrs. A?
He has to file return In India? Or South Africa?
As for his income for the A. S. year 2011-12 ?
As for his income for the A. S. year 2012-13 ?
He has no other income except salaried income!
Now my querry is what rate of income tax applicable to Mrs. A?
He has to file return In India? Or South Africa?
As for his income for the A. S. year 2011-12 ?
As for his income for the A. S. year 2012-13 ?
He has no other income except salaried income!
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 June 2011
Dear Sir,
We are government contractor, we have received Tax relief from income tax department on tax of 2% on TDS & WCT VAT.
while releasing payment Government employer also deducting 2% TDS & WCT VAT.
I request you to inform that even after deduction from Govt. Employer we have to pay sales vat 8% on it
With Regards,
Mangesh Kiranpure
9022546402
9768509273
We are government contractor, we have received Tax relief from income tax department on tax of 2% on TDS & WCT VAT.
while releasing payment Government employer also deducting 2% TDS & WCT VAT.
I request you to inform that even after deduction from Govt. Employer we have to pay sales vat 8% on it
With Regards,
Mangesh Kiranpure
9022546402
9768509273
15 June 2011
IN THE FY 2010-11 A WAS IN INDIA FOR NORE THAN 182 DAYS
A IS A RESIDENT HANCE SALARY INCOMDE FROM APRIL 2010 TPO FEB 2011 WILL BE TAXED IN INDIA
FOR AY 2011-12 RETURN SHALL BE FILED IN INDIA
CA MANOJ GUPTA
JODHPUR
09828510543
A IS A RESIDENT HANCE SALARY INCOMDE FROM APRIL 2010 TPO FEB 2011 WILL BE TAXED IN INDIA
FOR AY 2011-12 RETURN SHALL BE FILED IN INDIA
CA MANOJ GUPTA
JODHPUR
09828510543
15 June 2011
Mr. A has been in India since birth In A.S. Year 2011-12 he has been in India From 01.04.2010 to 28.02.2011 , then his India company/ employer send him to South Africa for work from 01.03.2011 to minimum for 1 year terms to maximum 2 years. In South Africa his employer cut TDS as per South Africa tax structure. Now my querry is what rate of income tax applicable to Mrs. A?
Reply-
You have to specify whether MRS. A has gone with Mr A?
I presume that she remained in India only and will be assessed as usual.
However, in case of MR. A, Residential Status for the AY 2011-12 will be that of a Resident & Ordinary Resident. His Global Income will be taxed in India and as such his foreign salary is also taxable in India.
*
He can claim tax relief in AY 2011-12 in respect to the tax paid on 1 month's salary to foreign govt.subject to the DTAT between India and that foreign Country.
*
For AY 2012-13, if he stays there only, he will be treated as NRI. He need not to file his return in India.
Reply-
You have to specify whether MRS. A has gone with Mr A?
I presume that she remained in India only and will be assessed as usual.
However, in case of MR. A, Residential Status for the AY 2011-12 will be that of a Resident & Ordinary Resident. His Global Income will be taxed in India and as such his foreign salary is also taxable in India.
*
He can claim tax relief in AY 2011-12 in respect to the tax paid on 1 month's salary to foreign govt.subject to the DTAT between India and that foreign Country.
*
For AY 2012-13, if he stays there only, he will be treated as NRI. He need not to file his return in India.
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 June 2011
For AY 2012-13, if he stays there only, he will be treated as NRI. He need not to file his return in India.
But what about tax deducted by company in south africa??
can it be claimed refund of TDS?
Mr. A alone has been in South Africa.
Mr. A has been in India since birth In A.S. Year 2011-12 he has been in India From 01.04.2010 to 28.02.2011 , then his India company/ employer send him to South Africa for work from 01.03.2011 to minimum for 1 year terms to maximum 2 years. In South Africa his employer cut TDS as per South Africa tax structure.
Now my querry is what rate of income tax applicable to Mrs. A?
He has to file return In India? Or South Africa?
As for his income for the A. S. year 2011-12 ?
As for his income for the A. S. year 2012-13 ?
He has no other income except salaried income!
But what about tax deducted by company in south africa??
can it be claimed refund of TDS?
Mr. A alone has been in South Africa.
Mr. A has been in India since birth In A.S. Year 2011-12 he has been in India From 01.04.2010 to 28.02.2011 , then his India company/ employer send him to South Africa for work from 01.03.2011 to minimum for 1 year terms to maximum 2 years. In South Africa his employer cut TDS as per South Africa tax structure.
Now my querry is what rate of income tax applicable to Mrs. A?
He has to file return In India? Or South Africa?
As for his income for the A. S. year 2011-12 ?
As for his income for the A. S. year 2012-13 ?
He has no other income except salaried income!
02 August 2025
Here’s a detailed explanation based on your query about **taxation and filing requirements for Mr. A and Mrs. A** considering their stay and income situation:
---
### Facts:
* Mr. A is an Indian resident from birth.
* For Assessment Year (A.Y.) 2011-12, Mr. A stayed in India from 01.04.2010 to 28.02.2011.
* From 01.03.2011, Mr. A is sent to South Africa for work for 1-2 years.
* South African employer deducts TDS as per South Africa tax laws.
* Mrs. A’s presence is uncertain — presumably in India unless stated otherwise.
* Income is only from salary.
---
### Tax Implications for Mr. A
**Assessment Year 2011-12 (FY 2010-11):**
* Mr. A has been in India for more than 182 days in FY 2010-11.
* Under Indian Income Tax Law, Mr. A is a **Resident and Ordinarily Resident (ROR)** for AY 2011-12.
* **Global income** is taxable in India, including salary earned abroad.
* Salary income earned in South Africa from March 2011 onwards is taxable in India.
* However, to avoid double taxation, Mr. A can claim credit for tax deducted in South Africa on the foreign income under the **Double Taxation Avoidance Agreement (DTAA)** between India and South Africa.
* He must file an income tax return in India declaring global income and claim relief under DTAA.
---
**Assessment Year 2012-13 (FY 2011-12):**
* If Mr. A stays in South Africa for the entire financial year (or more than 182 days), he will become a **Non-Resident Indian (NRI)** for tax purposes.
* Only income earned or received in India will be taxable in India.
* Income earned and taxed in South Africa will not be taxable in India.
* Mr. A is **not required to file a return in India** unless he has income taxable in India (e.g., rental income, capital gains).
* Mr. A can file a return if he wants to claim refund or for other purposes.
---
### Tax Implications for Mrs. A
* If Mrs. A stays in India during both years:
* She is an Indian resident and must file Indian tax returns declaring her income (if any).
* Her income is taxable as per Indian tax laws.
* If Mrs. A goes abroad, then her tax residential status will depend on her actual physical presence in India during the financial year.
---
### Regarding TDS deducted in South Africa on Mr. A’s salary
* Mr. A **cannot claim a refund of South African TDS from Indian tax authorities.**
* The TDS deducted in South Africa can be claimed as tax credit in India under DTAA when filing Indian returns to avoid double taxation.
* If Mr. A is an NRI for AY 2012-13 and has no Indian income, no Indian return is required, so no credit claim arises in India for that year.
---
### Summary Table
| AY/FY | Mr. A Residential Status | Taxable Income in India | File Indian Return? | Comments |
| ---------- | ----------------------------------------- | ------------------------------- | ------------------------ | ------------------------------------------------- |
| AY 2011-12 | Resident and Ordinarily Resident | Global income (India + foreign) | Yes | Claim DTAA relief for South African tax deducted |
| AY 2012-13 | Non-Resident Indian (if abroad >182 days) | Only India-sourced income | No (if no Indian income) | No tax on foreign salary, no Indian return needed |
---
If you want, I can help draft the relevant clauses or provide sample income tax return formats for filing. Would you like that?
---
### Facts:
* Mr. A is an Indian resident from birth.
* For Assessment Year (A.Y.) 2011-12, Mr. A stayed in India from 01.04.2010 to 28.02.2011.
* From 01.03.2011, Mr. A is sent to South Africa for work for 1-2 years.
* South African employer deducts TDS as per South Africa tax laws.
* Mrs. A’s presence is uncertain — presumably in India unless stated otherwise.
* Income is only from salary.
---
### Tax Implications for Mr. A
**Assessment Year 2011-12 (FY 2010-11):**
* Mr. A has been in India for more than 182 days in FY 2010-11.
* Under Indian Income Tax Law, Mr. A is a **Resident and Ordinarily Resident (ROR)** for AY 2011-12.
* **Global income** is taxable in India, including salary earned abroad.
* Salary income earned in South Africa from March 2011 onwards is taxable in India.
* However, to avoid double taxation, Mr. A can claim credit for tax deducted in South Africa on the foreign income under the **Double Taxation Avoidance Agreement (DTAA)** between India and South Africa.
* He must file an income tax return in India declaring global income and claim relief under DTAA.
---
**Assessment Year 2012-13 (FY 2011-12):**
* If Mr. A stays in South Africa for the entire financial year (or more than 182 days), he will become a **Non-Resident Indian (NRI)** for tax purposes.
* Only income earned or received in India will be taxable in India.
* Income earned and taxed in South Africa will not be taxable in India.
* Mr. A is **not required to file a return in India** unless he has income taxable in India (e.g., rental income, capital gains).
* Mr. A can file a return if he wants to claim refund or for other purposes.
---
### Tax Implications for Mrs. A
* If Mrs. A stays in India during both years:
* She is an Indian resident and must file Indian tax returns declaring her income (if any).
* Her income is taxable as per Indian tax laws.
* If Mrs. A goes abroad, then her tax residential status will depend on her actual physical presence in India during the financial year.
---
### Regarding TDS deducted in South Africa on Mr. A’s salary
* Mr. A **cannot claim a refund of South African TDS from Indian tax authorities.**
* The TDS deducted in South Africa can be claimed as tax credit in India under DTAA when filing Indian returns to avoid double taxation.
* If Mr. A is an NRI for AY 2012-13 and has no Indian income, no Indian return is required, so no credit claim arises in India for that year.
---
### Summary Table
| AY/FY | Mr. A Residential Status | Taxable Income in India | File Indian Return? | Comments |
| ---------- | ----------------------------------------- | ------------------------------- | ------------------------ | ------------------------------------------------- |
| AY 2011-12 | Resident and Ordinarily Resident | Global income (India + foreign) | Yes | Claim DTAA relief for South African tax deducted |
| AY 2012-13 | Non-Resident Indian (if abroad >182 days) | Only India-sourced income | No (if no Indian income) | No tax on foreign salary, no Indian return needed |
---
If you want, I can help draft the relevant clauses or provide sample income tax return formats for filing. Would you like that?
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