banner_ad

Foreign tax credit refund

TDS / TCS 327 views 1 replies

Hi,

Can a Private Limited Company carry forward its Foreign Tax Credit (FTC)? If not, what is the possible solution in the following scenario: The company has Foreign Tax Credit (FTC) of Rs 47,00,000, out of which Rs 17,00,000 has already been used to reduce the tax liability. However, I am unable to claim the refund for the remaining Rs 30,00,000. Kindly advise on how to resolve this issue.

Replies (1)

As per Indian tax laws, a Private Limited Company cannot carry forward Foreign Tax Credit (FTC) to subsequent years. However, there are possible solutions to utilize the unclaimed FTC: 1. Carry back: If the company has unabsorbed tax losses or unutilized tax credits in the previous year, they can be carried back to the previous year and adjusted against the tax liability. 2. Merge with another company: If the company merges with another company, the unutilized FTC can be carried forward and utilized by the merged company. 3. Amalgamation: Similar to merger, if the company undergoes amalgamation, the unutilized FTC can be carried forward. 4. File a refund claim: If the company has already used Rs 17,00,000 and is unable to claim a refund for the remaining Rs 30,00,000, they can file a refund claim with the tax authorities. 5. Seek professional help: Consult a tax professional or chartered accountant to explore other possible solutions and ensure compliance with tax laws. Please note that tax laws are subject to change, and it's essential to consult a tax professional for personalized advice.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details