samir prasad (Director-Operations) 19 February 2016
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.
Shivani Mittal (Practice) 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.
CA Shivani Mittal
samir prasad (Director-Operations) 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.
Shivani Mittal (Practice) 22 February 2016
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) 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...