Mr Joseph is a US Citizen, in the year 2015-16 he accrued Income from India in the nature of Consultancy Services from Mr Rahul.
Both Mr.Joseph and Mr.Rahul want advice on tax Deduction and procedure of Remittance of Fees.
What Mr Rahul has to do?
On analysing the DTAA, Mr Rahul has to do to the following things:
- Get Tax Residency Certificate from Mr Joseph stating he is a Resident in USA
- Get a copy of PAN card (if he holds any)
- Collect a copy of Invoice
- With-holding of taxes according to the DTAA
- Getting 15CB Certificate from a Chartered Accountant
- Getting 15CA filed Online by a Chartered Accountant
- Remit the money through the Banking Authorities along with the 15CB and 15CA
What Mr Joseph has to do?
Mr Joseph’s tax liability is already taken care of in India by way of With-holding of Taxes. In US, while disclosing his Global Income, he can take credit of taxes paid in India.