Tax question

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Paul (Querist)

04 June 2014 Can you help me in this little question

a client/individual is supposed to receive some referral fee for a consulting job overseas.

the company is deducting corp tax of 20% in UK from the fee received by the client/individual in India. and they would remit the balance along with a copy of tax deducted being sent for records.

will this tax deduction of 20% by the UK company as proof is enough for the indian entity to file tax that has been paid in UK or is there any other taxes that the indian entity has to pay.or any indian IT dept will ask him to pay?

as he has already being taxed by the payee overseas,

can you help in this matter.

Paul.

Amol S Joglekar

Amol S Joglekar (Expert)

04 June 2014 service is provided outside India and payment is received in India. It is most likely that the income is taxable in India. Since the tax is paid on this in UK, your assessee can claim the double taxation relief as per the DTAA between India and UK. Pls refer the international taxation module on incometaxindia.gov.in site

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)

04 June 2014 i agree with amol s joglekar

Paul

Paul (Querist)

04 June 2014 There is nothing been able to view on IT indian gov site, request a solution in details please.

Rupesh Jain

Rupesh Jain (Expert)

12 June 2014 pls check DATT agreement of india with UK and status of the tax paid in UK is refundable or not. if refundable then you can claim in your income tax return.

Rupesh Jain

Rupesh Jain (Expert)

12 June 2014 yopu can see below link

www.hmrc.gov.uk/taxtreaties/in-force/india-dtc.pdf

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