Withholding tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2011 My client was at dubai & provided services to an Indian company... it is case of Reverse Charge .

As Per sec 195 read with Sec 115A sUch Indian company deduct withholding tax @10.5575%.

1.So my query is it any provision on which my client (dubai base ) take Input of it Or it be any provision i.r.t to get exemption from such TDS ...?

2. Is Service provider have an option to take Input from Reverse charge mechanism ......

Vishal D Shah

Vishal D Shah (Expert)
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19 October 2011 You need to check with Dubai based consultant as to whether credit for the taxes paid in India are available as credit there against tax liability arising there?

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2011 thanks sir....... is it not any other way 2 get information abt dat

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Vishal D Shah

Vishal D Shah (Expert)
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19 October 2011 As per DTAA of India & UAE, Article 25: Extract:
Subject to the laws of the U.A.E. where a resident of the U.A.E. derives income which in accordance with
the provisions of this Agreement may be taxed in India, the U.A.E. shall allow as a deduction from the tax on
income of that person an amount equal to the tax on income paid in India. Such deduction shall not, however,
exceed that part of income-tax as computed before the deduction is given, which is attributable to the income
which may be taxed in the U.A.E.

Hence if the income is taxable in UAE, deduction for taxes paid in India shall be available.

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2011 thanks a lot sir........

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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23 October 2011 As per my limited knowledge about UAE Law, there is no Income Tax in UAE. Hence if there is no tax payable in UAE then the TDS deducted is a cost for UAE Company .

Anuj
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