Accrual of income

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Payment made to foreign professional for by an indian company controlled from india- does it constitute income deemed to be accrued in india in the hand of the foreign professional, under the Income Tax Act? 

Please mention applicale provisions or case law.

Regards

Replies (5)

Yes. it is accrued in India.

Relevant Sections:

Section-9

What is effect of DTAA with UAE in the above case?

dear souvik,

an assessee cannot be taxed twice for an income,so dtaa helps in avoidance of double taxation ie if taxed in india cannot be taxed in uae & vice versa .in this case it should be taxed in india.

 

dear souvik,

an assessee cannot be taxed twice for an income,so dtaa helps in avoidance of double taxation ie if taxed in india cannot be taxed in uae & vice versa .in this case it should be taxed in india.

 

dear friend

IN CASE WHEN THE PAYMENT MADE BY INDIAN COMPANY TO FORIEGN COMPANY FOR RENDERING ANY SERVICES THEN INCOME IS ACCRUED TO BE IN INDIA.......INCOME TAX DEPT. WILL DEFINITELY COLLECT TAX ....AND AS FAR AS MY KNOWLEDGE IS CONCERN DTAA CONCEPT WILL ALSO BE APPLICABLE..........IF THERE IS AN AGREMENT BETWEEN TWO COUNRIES .THEN AS PER THE NORMS INCOME WILL BE BIFURCATED,,BUT IF THERE IS NO AGREEMENT....THEN FOREIGN PROFESSIONAL HAVE TO PAY TAX IN INDIA...AND IN U.S.A WHILE FILING THE INCOME TAX RETURN HE WILL GET THE RELIEF U/S 91 AS PER DTAA..ONLY ON THAT INCOME WHICH IS DOUBLE TAXED.........

NILESH NANDANKAR...C.A.FINAL, C.S EXECUTIVE STUDENT

 

 

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