Dear All,
Is any one can help me in the below issue:
One of my friend during the Pr. Year 2011-12 has stayed in India 190 days and went to US Branch of the same company. He has received the salary in USD from US Branch of a MNC. Since the employer is same, the company has deducted the tax at source both in India & US its around 58% of the salary. The company is saying that as per Section 192, the company has to deduct the tax at source on overseas salary paid to employee, who is resident & ordinarily resident. Also informed that the as per the section 192 the Company has not eligible to give the benefit of treaty and employee has to apply for refund of tax after claiming the benefit u/s 90 on taxes paid in US by filing ROI.
In other words, WHT was deducted on overseas salary in US and Tax also deducted u/s 192 on the same overseas salary in India without giving the effect to WHT paid in US as per section 90.
Kindly suggest me whether the Company was correct in their action.
CAclubindia
