Suppose if a person of India is appointed as a Director of a Company of United States and is paid Managerial Renumeration for his Service. He is providing his Services from India only.
1. Where his Income will be held for Tax in India or Abroad????
2. If he deposit his income in foreign banks and later transfer in Indian banks????
18 April 2011
Dear Mr Jindal, The TDS Provisions, as applicable in US has to be applied by paying Company on payments. To my view, You should not bother for it. About DTAA treaty, As India already have DTAA with US, the credit of Taxes paid / deducted (If any) in US has to be claimed in Indian TAX Return with suitable documentation.
18 April 2011
As per Article 17 of India US Treaty Sitting Fees shall be taxable in both the countries. Hence the US parties may deduct TDS as per their law,but the credit of taxes paid in USA shall be available in India.
1.What are the papers or documentation needed for claiming the Tax deducted by US Entity in India?
2. If the Indian Director is paid renumeration for the Services provided by him to the US Entity ? Then will the procedure change or will the different laws will become applicable?
3. If the Amount so paid is deposit in the US Account of the Indian director after deduction of TAX by the US Company. and then if he transfers that amount to him Account will it have impact on his TAX liability in India , as the director is in India only and have never visited US ???
CAclubindia
