Bhutan tds

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Yogesh Agarwal (Querist)

16 August 2013 I have my client who is presently doing business transaction with the companies of Bhutan. The Bhutan Companies have deducted TDS on his income. Now the problem arises that while filing ITR 4, the TDS deducted at Bhutan is to be filled for claiming relief, the form requires the Article Number to be filled. I have requested the Income Tax Department to resolve the query but the answer was unsatisfactory. Please resolve my query.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

16 August 2013 You separate the income of Bhutan and India and pay the tax for Bhutan earned income in Bhutan and Indian income in India. As far as my knowledge goes in Bhutan there is Turnover tax in the form of Income Tax and on the gross turnover if you pay the tax then no other formalities are required.

If you want to file the return for 100% turnover then you claim the TDS or tax paid in Bhutan as revenue expenses and all purchase and sales should be declared in India but the sales tax paid in India is refundable which should also be included in the financial statements.

Yogesh Agarwal

Yogesh Agarwal (Querist)

19 August 2013 The Bhutan Companies have deducted TDS on Income generated theron, now what is the relevant article of DTAA to be written while filing ITR 4

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