Ours is a Indian subsidiary of a US based company. We deduct and pay withholding taxes on invoices recieved from our parent company and send Form 16 to our US company. However our US parent company is not able to claim the tax we have deducted. Both our Statutory and Internal auditors hold divergent views on this subject.
Our Statutory auditor says in the US they have certain form that has to be filled by us, once we do that, they will be able to use TDS in thier returns.
Our Internal auditors are of the opinion that our US parent company needs to have an indian establishment only then will they be able to claim refund.
In the meanwhile the tax deposited by us is still lying in the IT dept. since there is no PAN mentioned.
Please let me know what is to be done so that our US co.can claim IT deducted by us.
CAclubindia
