REFUND CLAIM OF WRONLY DEDUCTED TDS OF FOREIGN COMPANY

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ANAND (Querist)
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10 May 2009 An Indian company has deducted TDS u/s 195 on income which accrued and received outside India of a Foreign company having no permanent establishment in India. i.e. though the income was not liable for income tax, the Indian company made TDS. Considering the above facts

1) Can the foreign company on its own claim the refund of TDS?If yes, How and where?

2) Is there is any procedure to avoid deduction under section 195? If yes, WHat is that?

3) Is the answer to the above mentioned queries will be different if TDS is made under any other section?

Please Guide

Ca Anand Dubey

Ca Anand Dubey (Expert)
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10 May 2009 1. YES IN HER OWN COUNTRY, IF THERE IS DTAA
2.SECOND QUESTION IS CONTRADICTRY AS YOU SAID INDIAN CO. ALREADY DEDUCTED TDS. NO NEED TO AVOID IF TDS IS LEGALLY NOT APPLICABLE THEN NO DEDUCTION SHOULD BE MADE.
3.SECTION 195 APPLY FOR FOREIGN CO. , WHAT OTHER SECTION YOU ARE TALKING ABOUT?

ANAND

ANAND (Querist)
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11 May 2009 Dear Sir Thanks for your reply, But I wanted to ask whether the foreign company can claim TDS refund in India?

The Indian company is insisting to deduct TDS thought not applicable as its consultants has advised her to do so.

Please reply anandmutha@gmail.com

Ca Anand Dubey

Ca Anand Dubey (Expert)
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12 May 2009 The following issue you need to consider :-
1. In which capacity that company file return here as the co. may have other income.
2. For filing Income tax return here that co. also need PAN,
3. Please check the applicability of Income tax refund.
4.Can your co. file return in other country on the same ground?
5. Going through DTAA is the practical way of solution.
So just give TDS certificate and let that co. take benefit under DTAA

CA.ATUL GUPTA IPCC TAX FACULTY

CA.ATUL GUPTA IPCC TAX FACULTY (Expert)
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31 October 2012 ANAND SIR BUT WHAT IF FOREIGN COMPANY HAS LOSS IN HER HOME COUNTRY.AND IS THIS RIGHT ACCORDING TO LAW THAT INDIAN COMPANY CAN DEDUCT TAX IF FOREIGN COMPANY IS NOT LIABLE TO TAX

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