Company income tax set off against wth on foreign income

This query is : Resolved

Deepak Agrawal (Querist)
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28 June 2019 Dear All,

As an IT company, I need to send my team members outside India to work on the projects.

Suppose I get billing done for a month for USD 15000.
The client as per law of land client will deduct USD 5000 as withholding tax.
Employee salary and other expenses are USD 6000.
Net earning USD 4000 before tax.

Do I need to pay income tax on USD 4000 in India ?
Will I be able to net off USD 5000 paid as withholding tax in the client country if I get a certificate from client that withholding tax was actually deducted.

Thanks and Regards,
Deepak

Rajesh Kumar

Rajesh Kumar (Expert)
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28 June 2019 It appears that you do not have a PE in the country where you are working. In that case, all income is taxable in India. You shall get credit of witholding tax in India.