Souvik Kumar Ghosh (CA Final) (1368 Points)
26 January 2012Payment 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
Regit
(CA.Final)
(320 Points)
Replied 26 January 2012
Yes. it is accrued in India.
Relevant Sections:
Section-9
Souvik Kumar Ghosh
(CA Final)
(1368 Points)
Replied 26 January 2012
What is effect of DTAA with UAE in the above case?
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 27 January 2012
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.
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 27 January 2012
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.
nilesh nandankar
(C.A FINAL C.S EXECUTIVE STUDENT)
(51 Points)
Replied 28 January 2012
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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