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Withholding tax

Nagamani (Senior Manger Finance) (34 Points)

21 February 2017

We as a Pvt Ltd Co have provided services to a Malaysian client and while receiving the payment the client has deducted a tax. Can we claim that tax in India

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4 Replies

Mahesh Bingi (Tax return preparer) (462 Points)
Replied 23 February 2017

Q1: Have you given PAN to the client?

Q2: Is the client is a regular to receive indian payments / Have a PAN in india?

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Nagamani (Senior Manger Finance) (34 Points)
Replied 23 February 2017

We have not given PAN to the client.

The client is a one of the leading software industry and may have a sister concern and offices in India, So will have PAN in India. But I think our malaysian client may not receive regular payments from India

Mahesh Bingi (Tax return preparer) (462 Points)
Replied 24 February 2017

Hi, You have to file an IT return in Malaysia as per their Acts. And show your Foreign income & TDS to indian IT dept in INR currency while filing the return and enjoy tax exemption.