COUNTRIES HAVING DTAA AGREEMENT

Please provide notification copy of DTAA between India and Myanmar.Please also advise if an indian company (say "X") performs contractual work at Myanmar for only one year, do income tax implied by client from myanmar and if yes, then what is the benefit the X company can avail in India with the exception the X co. do not have any registered office at Myanmar except small project office.please advise.

Hi,

Notified copy of DTAA agreement /notice_circulars/dtaa-between-india-and-union-of-myanmar-2068.asp

Regards,

Manoj

Thanks Manoj,

pls also reply on the second part of my querry.

"Please also advise if an indian company (say "X") performs contractual work at Myanmar for only one year, do income tax implied by client from myanmar and if yes, then what is the benefit the X company can avail in India with the exception the X co. do not have any registered office at Myanmar except small project office.please advise.

Whether myanmar can levy the tax is depend upon the Income tax act of myanmar. SO u dotn worry abt that. U only have to what benefit u would get even Myanmar levies tax on ur income.

However, w e.f. 01.04.2010, India entered into DTAA agreement with Myanmar, thus if Indian comapny pays tax in Myanmar as per the income tax in force in Myanmar, The indian company is very much take the benefit of such tax paid in Myanmar as if such tax in paid in India and such tax shall be deemed to be tax paid by indian company to indian government.

Regards,

Manoj

Thanks Manoj once again.

Related to my querry, if  X  indian company is not  registered in Myanmar since project work is only for one year and later shut down their business after project completion then in that case if tax deducted by client from Myanmar say 3.5% on billing then how the benefit can be availed by the X indian company in India.(Note receivables in this case are collected in india).

Pls advise urgently taking in concern " x company operated by only project office and not by registered office in overseas due to limitation of completion of contract.

Regards,

Tarun

Dear tarun,

An indian company is a company which is registered in India under the compacnies act, 1956 or some eartstwhile act existing in india therebefore.

For companies, it either be resident or non resident. Indian company would always be resident in india as per Income Tax Act, 1961. Further for Residents, all the global income would become taxable in india. Thus, even if the service provide outside india for certain period and irrespective of location of its receipts, all global income of indian company would always become taxable in india. Thus, this is first clarification. Thus, u have to consider that as income for calculating india income tax.

Secondly, U can take the benefit of Tax paid in Myanmar as if such tax is paid in india. Means, u first calculate ur Tax payable and then deduct therefrom Advance tax paid (if any) and TDS (including TDS deducted by the party outside india under the DTAA agreements).

Regards,

Manoj

thanx Manoj,

that means if we billed to our client overseas for say USD100 and client remit to us in India for work performed in overseas after TDS say USD 3 then USD 3 will be first compared with tds on sub contractor in india say USD 2 and so diff of excee tds i.e. USD1 can be availed for refund and vice versa.

pls confirm for more clearity.

Regards,

Tarun

the above is with the exception that no tds deducted by the indian co working overseas on its sub-contractor. regds

hi,,,,,m sheetal ,,,,,i wnat to do my proejct report on double taxation avoidance agreement,,if u have any material regarding that,,can u pls snd me,,,,,,,

Dear Mr Manoj,

We are a Indian company registered under the Indian Companies act.We have recently entered into execution of supply contract with Myanmar Railways.Myanmar Railways are deducting withholding Tax 3.5% from our Supply bills .We are attaching herewith the letter issued by Myanmar Railways in respect to withholding tax deducted by them.We would like to know that whether we will can claim refund of withholding tax in India from Income Tax department  at the time of filing of Income Tax return.

Regards

Anant Jhawar

9830622602.