samir prasad (Director-Operations) (31 Points)
19 February 2016Hello Team,
we are an IT consultancy and service provider, registered as a private limited company in india. its a startup company, we have some clients in US and they are registered as LLC. This fiancial year we received some consultancy fees from them. i want to know that do we have to pay tax in both the countries or just only in india?
A quick reply will be very helpful and i really appriciate for the help.
Thank you.
Best Regards,
Samir
Shivani Mittal
(Practice)
(425 Points)
Replied 19 February 2016
Services are provided in India or outside India ?
samir prasad
(Director-Operations)
(31 Points)
Replied 19 February 2016
In India, we worked on the report in india and send them. payment is directly wired to our company's bank account.
Shivani Mittal
(Practice)
(425 Points)
Replied 20 February 2016
It will be taxable in India. If in case tax is deducted there similar to TDS/withholding tax in India, you can claim tax credit for the same. Rest you have to file your ITR here and declare such income in that.
Regards
CA Shivani Mittal
samir prasad
(Director-Operations)
(31 Points)
Replied 21 February 2016
Miss shivani thank you so much for the help, i have to get confirmation from them if they have deducted any tax and paid us or not, but as of now they are asking to sign send them FORM W-8BEN-E. ithink that is for their tax compliance.
Regards
Samir
Shivani Mittal
(Practice)
(425 Points)
Replied 22 February 2016
Hi,
Yeah, that's for the status of the entity for withholding tax in US....Refer....https://www.irs.gov/uac/About-Form-W-8BEN-E
You can check with them for final TDS certificates like we have form 16/16A here in India.
samir prasad
(Director-Operations)
(31 Points)
Replied 22 February 2016
Hi Shivani, thank you for the fruitful insight, i referred the irs.gov website and send them the signed Form-W-8BEN-E. and send them our query regarding the TDS issue. rest looks good.
Thanks again for the help, may require your help if any other issue comes...
Best Regards,
Samir
Shivani Mittal
(Practice)
(425 Points)
Replied 23 February 2016
Hi Samir,
You are welcome
Regards
CA Shivani Mittal
CAclubindia
