Refund of excess tds for payment to non-resident
This query is : Resolved
14 October 2011
Dear Sir,
We are a newly formed Private Limited Company, operating from 1st of April,2011 from Bangalore. Our primary area of business is Social Media marketing. For this purpose we have been obtaining services from Facebook Ireland Ltd; Ireland, who do not have any permanent establishment in India.
As advised, we have been deducting TDS on payments made to them @20%, for the last about 6 months, since they do not have PAN registration.
Now, Facebook Ireland Ltd. is telling us that they will not be able to credit our account with TDS amount, as no tax is deductible as per DTAA between India and Ireland.
We would, therefore, like to have your valuable opinion on -
a) procedure for claiming refund of excess TDS deposited by us
b) Our future course of action, as, it will be almost non- voable for our company to bear this extra cost
We shall be thankful for your valuable advice and if you could kindly suggest a suitable consultant in bangalore to take up our case.
Thanks and regards,
Virendra Sahdev
We are a newly formed Private Limited Company, operating from 1st of April,2011 from Bangalore. Our primary area of business is Social Media marketing. For this purpose we have been obtaining services from Facebook Ireland Ltd; Ireland, who do not have any permanent establishment in India.
As advised, we have been deducting TDS on payments made to them @20%, for the last about 6 months, since they do not have PAN registration.
Now, Facebook Ireland Ltd. is telling us that they will not be able to credit our account with TDS amount, as no tax is deductible as per DTAA between India and Ireland.
We would, therefore, like to have your valuable opinion on -
a) procedure for claiming refund of excess TDS deposited by us
b) Our future course of action, as, it will be almost non- voable for our company to bear this extra cost
We shall be thankful for your valuable advice and if you could kindly suggest a suitable consultant in bangalore to take up our case.
Thanks and regards,
Virendra Sahdev
07 November 2011
Please see circular no 7/2007 and 7/2011 for the same.
Anuj
+91-9810106211
femaquery@gmail.com
Anuj
+91-9810106211
femaquery@gmail.com
08 November 2011
Thanks for the clarification. can you kindly suggest to whom the claim application be addressed and is there any particluar format in which the application for refund is to be made?
Thanks & regards,
Virendra Sahdev
Thanks & regards,
Virendra Sahdev
20 July 2025
Regarding your query on claim application format and whom to address:
Who files the claim:
The non-resident (Facebook Ireland Ltd.) must file the claim for refund by filing their Income Tax Return in India.
No separate refund application from deductor:
The company (deductor) cannot claim refund of TDS on behalf of the non-resident; only the deductee can claim refund.
If you as deductor have mistakenly deposited excess TDS and want refund:
You may approach your jurisdictional Assessing Officer (AO) with details of the challan and tax payment for rectification, but this is rare — usually, excess deduction refunds are claimed by the deductee by filing returns.
Who files the claim:
The non-resident (Facebook Ireland Ltd.) must file the claim for refund by filing their Income Tax Return in India.
No separate refund application from deductor:
The company (deductor) cannot claim refund of TDS on behalf of the non-resident; only the deductee can claim refund.
If you as deductor have mistakenly deposited excess TDS and want refund:
You may approach your jurisdictional Assessing Officer (AO) with details of the challan and tax payment for rectification, but this is rare — usually, excess deduction refunds are claimed by the deductee by filing returns.
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