Querry regarding international taxation

Hi all,

I have one doubt regariding international taxation.

I being on B1 visa went to USA for 3 months to work there. For that work the firm in USA after deducting necessary tax as per their rules paid fees to my employer in India (as on B1 visa i cannot be paid officially in dollars so dollars were transferred to my employer and then my indian employer gave me rupees)

Now, when my indian employer paid me in indian currency, he deducted TDS for the same considering it as a part of salary.

Can anyone help me out that whether i can get tax credit of that amount which USA employer already deducted from my fees before remitting it to Indian employer??...and if i can get tax credit whether deduction of TDS is required??

Replies (3)

Yes...u can get benefit of the tax deduction in USA.

The difference of the tax rates between the two countries shall be payable/refundable to you.

 
     

Thanks prateek ji but can you give me citation for the same..??..How things will exactly work???..

Yes, there is a thing called Double Taxation Avoidance Agreement between India and US.

Hence, when you have given the tax on same amount in US, you can claim credit of the same in Indian Taxes.

Article 25 of DTAA between India and US will be applicable in your case. 

Kindly take a look at the same.

Proof of payment of taxes in the US is a must

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