Tds deducted by nepal co. can we claim in india

This query is : Resolved

Sanjay Goriwale (Querist)
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12 May 2015 we have done one commission job of furnace in nepal. and raised labour bill to nepal co. but the nepal co. release the payment to us after deducting 15% tds.
Can we claim that tds amount in india.

Vishrut Shah

Vishrut Shah (Expert)
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12 May 2015 The payment was done on account of income accrue in Nepal due to DTAA entered between India & Nepal.

Accordingly you have to obtain Tax Credit Certificate from Nepal government and you can claim the said amount in India in your return as tax deducted.

Or alternatively you can file tax return in Nepal and can take refund of the amount if amount is not taxable in Nepal.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 May 2015 Being resident of India you have to file IT return considering the income earned in Nepal. The tax deducted at source in Nepal can be reduced from the tax payable in India on such income.