Withholding tax

This query is : Resolved

Manvinder Singh Kalra (Querist)
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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

CA PARAS BAFNA (Expert)
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19 February 2012 By including the foreign Income with Indian Income , Tax Payable in India is calculated.
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On the basis of Tax so calculated, Average rate of tax has to be found.
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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.
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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.
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Your tax liability will reduce to the extent of tax credit out of Thai Tax so arrived.
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