Withholding tax
This query is : Resolved
Manvinder Singh Kalra
(Querist)
18 February 2012
I am "an individual" providing professional services to a company in Thailand. Is the company required to deduct TDS/withholding tax. How I will claim tax benefit of that while submitting my IT return in India.
CA PARAS BAFNA
(Expert)
19 February 2012
By including the foreign Income with Indian Income , Tax Payable in India is calculated.
.
On the basis of Tax so calculated, Average rate of tax has to be found.
.
Such Average rate is applied on the income of Thailand and tax so payable is if more than , you will get the tax credit in full to the extent of Tax withheld.
.
If Tax on Thai Income arrived on average rate basis, is lesser than the Tax Withheld, this lesser amount can only be claimed as Tax Credit.
.
Your tax liability will reduce to the extent of tax credit out of Thai Tax so arrived.
.
.
On the basis of Tax so calculated, Average rate of tax has to be found.
.
Such Average rate is applied on the income of Thailand and tax so payable is if more than , you will get the tax credit in full to the extent of Tax withheld.
.
If Tax on Thai Income arrived on average rate basis, is lesser than the Tax Withheld, this lesser amount can only be claimed as Tax Credit.
.
Your tax liability will reduce to the extent of tax credit out of Thai Tax so arrived.
.
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