Tds deduction in bhutan, (file attached)
AK PUNDIR
(Querist) 19 March 2014
This query is : Resolved
Dear Sir,
Please guide me on the following Point.
M/s ABC Company Pvt. Ltd., situated in India.
Main Work / Business of said company is JobWork (Repair & Maintinance With Material)
Raised Invoice in Following Pattern to XYZ Ltd., Company situated in Bhutan :
BILL
M/s ABC Company Pvt. Ltd.
India
To;
XYZ Ltd, BILL No: 02
Bhutan BILL DT: 02/03/2014
Sr. No. Particulars Quantity Rate Amount
1 Material(uqj) 2 150 300
2 Material (cib) 3 235 705
3 Material (ouc) 1 141 141
Total of Material Sold 1146
Vat @ -- (Nil) due to Material Exported 0
Net Amount of Material Sold 1146
4 Labour Charges 354
Service Tax @ 12.36% on Labour Charges 44
Grant Total : (Net Amount of Bill ) 1544
The Main Question is that M/s XYZ Ltd., Bhutan, deducted TDS (TDS of Income Tax) @ 3% on amount Rs. 1544/- from our Payment /Invoice & Balance paid to us (1544 Less TDS @ 3% =46/- =Total Rs. =1498/- Paid to us). How we can get benifit of this TDS amount towards our Income Tax Liabilities. The Said Company give us TDS Certificate raised under Govt. of Bhutan.
Your co operation will be highly appreciated.
Thanking You.
Your Sincerely,
(Ashok Kumar Pundir)
Cell No : 9897049500
E_Mail : pundirask@rediffmail.com
ajay sethi
(Expert) 19 March 2014
commercial query
Rajendra K Goyal
(Expert) 19 March 2014
India does not have any DTAA with Bhutan and hence no relief under sec.90 can be claimed for double taxation.
However, remedy lies in Sec. 91 (1) for claim of credit for tax paid in any country with which India has not DTAA.
For the purpose you need to calculated the tax payable under the Indian Income Tax on the income arising in Bhutan
From such amount of TAX under the Indian Income Tax - a deduction of a tax as per Indian Income Tax and that paid in foreign country, whichever is lower shall be made.
If the rates of tax in both the country are equal then amount as per the the tax rate as per Indian Income Tax shall be allowed as deduction.
(Taken from Net)
AK PUNDIR
(Querist) 29 April 2014
Dear Mr. Rajendra K Goyal,
India have DTAA with Bhutan, Please write your email address/send test mail so that copy of DTAA with Bhutan may be e_mail to you.
Thanks
