Relief under dtaa

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bikramkatuwal (Querist)
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03 April 2016 Hi, What if fees for technical services is being paid to the assessee(indian resident- a trust) by foreigner(Singapore) after deducting tax As per DTAA. The entire income of this trust is exempt from income tax. How can he claim relief and can he claim refund for this tax being deducted and paid in Singapore from indian Govt. Please answer quoting respective sections.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 April 2016 As the entire income of the trust is exempted no relief can be claimed or no refund for this tax be claimed from Indian Govt.

bikramkatuwal

bikramkatuwal (Querist)
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03 April 2016 Sir can u please quote under which section we are not eligible for relief here. This create hardship over assessee. Further suppose if this trust had issued invoice to this Singapore party of say 100,000 and that party paid him 90,000 after deducting TDS. Now Under which head he will show this 10,000 tax amount which he has paid to Singapore govt and will he have to show 100,000 as his income or 90,000 which he actually received in his P/L statement ?

bikramkatuwal

bikramkatuwal (Querist)
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03 April 2016 Enter comment here

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 April 2016 Refer section 90 of Income tax Act. As the income of the trust is exempted no way to claim any relief.
Show this 10000 as tax expense in Singapore.

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