Hi ,
I have recently started a Pvt ltd company in India. I have a client in US (based out of Califonia) and will be signing the contract soon. I wanted to know how the Tax deduction would work for my company . Will there be TDS at US ? Will the payment to my company be double taxed (US and India) ?
You need to check DTAA between India & USA with respect to the nature of income that is being received and the relevent provisions of Income Tax Act to determine the applicability of TDS. Yes, the said income will be taxable in India as your company is incorporated in India. In case TDS is applicable, relief for the same can be claimed u/s 90 while filing the ITR.
Regards
CA Shivani Mittal
Shivani & Associates
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
