Credit of withholding Tax

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A company received full payment from its foreign subsidiary for an invoice. The subsidiary paid withholding tax in Saudi Arabia from its own funds and provided a certificate. The company is inquiring if they can claim this withholding tax as an input credit on their Income Tax Return (ITR) and what supporting documents are needed. It's noted that this tax payment won't appear on India's Form 26AS.

lalit kumar saini

lalit kumar saini (Querist)
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21 August 2021 Dear sir,
One of my foreign subsidiary make full payment against invoice raised by our complany. And deposit withholding tax to Saudi arabia government from its own pocket. They issue certificate of withholding tax from tax authorities of zakat and tax. Now can we claim input of withholding tax in any way in my ITR ? And what other supporting documents required for the said purpose?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 August 2021 You have received full payment and tax not paid from your account.
Hence I am doubtful whether you can claim any tax credit.
Check witholding tax paid in your name.

lalit kumar saini

lalit kumar saini (Querist)
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23 August 2021 But withholding tax is not going to be reflected in 26AS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 August 2021 Yes, it will not be reflected in 26AS. Check witholding tax certificate.

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