International taxation advise!

cn u plz tel me whether there is any indian branch of d organisation u r workng in US

Hi Palash,

Thanks for your feedback. No there is no Indian branch of my US employer.

Please advise.

You have need to refer double taxation agreement if any,you can claim rebate of any income-tax paid in abroad.

Originally posted by : CA CMA Amit Patel
	You have need to refer double taxation agreement if any,you can claim rebate of any income-tax paid in abroad.

Hi Amit,

Thanks for your feedback.  Since I am not from taxation field and yet to hire a CA, could you please advise how much would be the rebate be here in %? Since I am paying 30% taxes there in US, would this rebate be almost close to nill ? 

My objective is to get taxed only in 1 country else it doesnt make sense to pay 30% here in India and 30% in US :(

 

Please advise.

As per ARTICLE 25 (2)(a) of DTAA between India and USA. 2. (a) Where a resident of India derives income which, in accordance with the provisions of this Convention, may be taxed in the United States, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in the United States, whether directly or by deduction. Such deduction shall not, however, exceed that part of the income-tax (as computed before the deduction is given) which is attributable to the income which may be taxed in the United States. First the tax as per Indian Income tax rates should be calculated and after the same credit of TDS deducted in US should be given. The tax and income of US shall be converted using the exchange rate as on 31st March. Note: Only Federal taxes should be taken into account and not State tax or Social security contribution. Rgds//Vaibhav