Dtaa

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Gorav Kumar Goyal (Querist)
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20 June 2012 If tds has been deducted by foreign country of person resident in india then we take credit of this TDS against Tax payable in india.
But can we adjust this credit against tax payable on any other income or only income on this tds has been deducted.

And if there is refund after adjusting tax credit then how it will be taken from department. whether from india or foreign.

Thanks.

Gorav Goyal

CA Kalpesh Gokani

CA Kalpesh Gokani (Expert)
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20 June 2012 u can take credit of this TDS for all the tax payable by the assessee...i.e. for all the income of the assessee...but while calculating tax and aviling TDS credit u need to take into account DTAA provisions with that foreign country..if there is no DTAA with that country u have to take average tax rate as per provision for Section 91

Gorav Kumar Goyal

Gorav Kumar Goyal (Querist)
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20 June 2012 Mr. Kalpesh,

Righlty said.

If there is bilateral agreement , then can we take full credit and if yes, then in case of refund due to this credit, who will be going to refund us- Indian income tax deptt. or foreign deptt.

In case of India- what will be proof required? return or proof of tds

In case of foreign ??

Thanks.

CA Kalpesh Gokani

CA Kalpesh Gokani (Expert)
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20 June 2012 if TDS is deducted outside India...it might be treated that u have permenant establishment in that country..if this is true..u have to file return in that country also and get the refund from that country..or you have to go as per bilateral agreement with that country..

Gorav Kumar Goyal

Gorav Kumar Goyal (Querist)
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20 June 2012 Whether TDS will be deducted on business profits of indian company by foreirn country if Indian Company is having no permanent establishment in foreign country??

In our case TDS has been deducted then how should we go for the same, because TDS has been deducted inspite of having no PE in foreign and no allowance for expenses have been given??

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