China dtaa tax query

Tax queries 1112 views 3 replies

Uttamkumar

Network Engineer

25 Points Joined December 2011

Hi All Experts,

Need your help in my case...

I am a resident of India, employed with Chinese base company and earning money from China in Dollars to my India Account.Since this company is not having any Permanent Establishment in India.

As a employee my salary is fixed. My chinese company is paying Tax on my behalf as I am employee of company (Like TDS in India). I got tax receipts which states my Passport No. and my name.

So under act 90 DTAA , i should get relief India , right?

Since the tax paid in other country is part of my salary.. which is lot more than indian tax percentage. Right now I filed returns with relief of act 90. But still got 143 initimation...

Same time, Plz let me know how to change jurisdiction. Since I already moved from my home town to Metro city.

Plz help me to clarify this query. Looking for your replies..

Link - https://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=https://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dta/A1_China.htm

Thanks in advance..

Uttam

Replies (3)

shushantsinghal

BCOM(HONS) C.A

283 Points Joined January 2009

In ur case since u r a resident of india ur whole income which is earned any where is taxable in india & in such case DTAA is relevant ......u r required to file a IT return in INDIA......read with DTAA either such income is taxable in india/china or tax paid in china is TREAT as TDS in india.....

Uttamkumar

Network Engineer

25 Points Joined December 2011

Thanks Shushant for your quick response. But I read the DTAA agreement, due to technical terms . I am not clear.

As per my understanding, It should be treated as TDS and I should get credit in India for same.

Can you Plz check and confirm me. Since I am layman in this process.

Thanks...

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

Under India-China DTAA, the income being earned by Indian person shall be taxable in India and hence TDS should have been deducted by Chinese Company in INDIA and not CHINA.

Anuj