29 July 2022
Mr.A is an Indian Ordinary Resident for the A.Y 2022-23 as per Income tax rules.
He derives Director Remuneration from a company in Singapore. It is taxed in Singapore and taxes paid in Singapore.
As per article 16 of the DTAA between India and Singapore, director remuneration is taxed in the state where the company paying the director fees resides i.e Singapore.
Then, which of the following is correct
1) Is the Director remuneration from Singapore is exempted from taxation in India in hands of Mr. A?
2) If it is taxable in India in the hands of Mr.A and tax paid in Singapore shall be claimed as foreign tax credit in India?
Can anyone help me on the above issue. Thanks in advance
CAclubindia
