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Query on international taxation

Tax planning 312 views 1 replies

Dear Professionals,

We have a client, a one man UK based foreign company. He was given contact for technical services by Indian company during F.Y. 2015-16 in india for Non-Conventional Energy Project. The only Director (our client) had taken one rented premises in india. The TDS was deducted @ 40% from gross payments by indian company. Now my query is can this foriegn company declare its income u/s 115A and pay tax @ 10% of Gross receipts or it has to file return under other section?

Thank you in anticipation.

 

Replies (1)
Given that the TDS has already been deducted at 40 percent by the Indian company, it is advisable for the client to file the return of income in India offering this income to tax in India as fees for technical services under section 115A(1)(b) at 10 percent and claim refund of the taxes deducted. Hope this helps. Should you have any further queries you can reach out to me at niralicshah15 @ gmail.com.


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