Hello,
An employee (Resident Indian) working in India in a subsidiary of a US Company is given RSU or Restricted Stock Units of parent company. 25% RSU has vested as per the vesting schedule in Jul 2018 and he has been issued certain number of stocks. While distributing stocks , 34.32% of stocks are withheld (Sell to cover) to meet tax liability in US and after reducing these stocks, the balance is given to the employee.
Indian company also has calculated perquisite based on FMV on total number of stocks including withheld stocks and properly deducted TDS @ 30.9% and remitted the TDS and issued Form 16 for FY:2018-19 and it is properly reflecting in Form 16 Part A and Part B. So RSUs are taxed twice. About 65.22% value is consumed in tax.
Is double taxation done by company is correct ?
Can DTAA benefits be availed for refund. What is the procedure. Which ITR to file ?
CAclubindia
