15 September 2019
One of my clients is software developer . He did the work for companes in Tanzania. While receiving the payment they deducted withholding Tax @15%. My question is this tax can be claimed as TDS or tax credit under income tax act ? If yes then how ? I know this can't be explain in very short but I really need help. If your are expert in this then I am ready to pay your fees . My mobile is 9909285949. I am from Ahmedabad
15 September 2019
Convert income earned outside India into Indian currency – convert your income in foreign currency into Indian Rupees by using the State Bank of India telegraphic transfer buying rate (TTBR) of the last day of the month before the month in which income is due. Now, include this income under the head to which it belongs If TDS has been deducted on your income you are allowed to take credit of such taxes. For this purpose, reference has to be made to the relevant Double Tax Avoidance Agreement (DTAA) of the country where such income has been earned. India has entered into DTAAs with several countries. DTAA makes sure that a taxpayer is not doubly taxed for the income earned outside the country of residence. Since income may be taxed at source i.e. from the place it originated and is also usually taxable in the country of residence, the DTAA makes sure that the taxpayer is not adversely impacted. The taxpayer is also allowed to take credit of TDS deducted. Taking benefit of a DTAA involves obtaining a Tax Residency Certificate (TRC) that helps identify and certify your tax residency status to make sure the correct DTAA has been applied. While taking TDS credit, make sure you are referring to the correct DTAA. Under DTAA, there are two methods to claim tax relief – exemption method and tax credit method. By exemption method, income is taxed in one country and exempted in another. In tax credit method, where the income is taxed in both countries, tax relief can be claimed in the country of residence.
22 September 2019
Thank you very much sir. I want a expert for this matter. If you are expert in this matter and want to provide paid consultancy in this regard then please give me your contact number. My contact no is 9909285949
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