Tax rebate u/s 90/90a

This query is : Resolved

BCJAIN (Querist)
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16 July 2013 An Indian Company AA has a Wholly Owned Subsidiary BB in the USA. The Parent Company AA had received interest income and also income for some service provided in the Financial Year 2011-12. India and the USA have a Double Taxation Avoidance Agreement between the two.

The American company deducted 15% Tax withholding out of the income remitted.

The Parent Company sought relief u/s 90/90A for the amount of Tax withholding. This was entered into the Computax that readily accepted the entry.

The Centralized Processing Centre of the Income Tax Department has sent an Order u/s 143(1) wherein the company has not been given the credit of and hence the refund against Tax withholding denied.

Kindly advice.

Thanks in advance.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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16 July 2013 Dear Mr. BCJAIN,

you can adjust the tax deducted in foreign country against the liability in India, but cannot claim the refund of the same.

Anuj