Whether tax credit available in china

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Whether China client can claim tax credit for TDS deduction done by Indian entity.

As per DTAA china can claim credit, but our client is insisting on non deduction or asking us to bear the tax a sit is difficult for them to claim. Does anyone know how I should convince my client to claim tax credit.

Sudeep

Sudeep (Expert)
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12 June 2014 I understand you have a vendor in China. While making payment you want to deduct tax at source.

Claiming tax credit in China (Not Hong kong)is challenging. (no experience in Hongkong only heard about it)

The authorities there will ask for all details to be converted in Chinese language. You can get it done in Mumbai at around 1500 rupees and then provide your Chinese vendor with the same.

It happens although it takes a few follow ups.

Sudeep

Sudeep (Expert)
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12 June 2014 Further adding to my above reply, you can provide them with a covering letter providing the relevant extract of Article 23 of India China Tax Treaty.

They also shall have to file an undertaking that the income is considered for computing taxable income in China. (This was done by my client through Lawyer in China - We only know that this was done in this manner and have not executed it first hand) :)

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Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2014 Many thanks Sir, I will try this procedure