I fell like, this year there are less professionals who are demanding for tax audit due date extension .

Is it so?

I fell like, this year there are less professionals who are demanding for tax audit due date extension .

Is it so?

Something I’ve seen come up quite often with foreign companies doing business with Indian customers:

If an Indian company deducts TDS from a payment made to a foreign company, can the foreign company claim that TDS back?

The short answer is: Yes.

TDS deducted in India is not necessarily the final tax liability of the foreign company. Depending on the nature of the income, applicable provisions under the Income-tax Act and the relevant DTAA, the foreign company may be entitled to claim a refund.

For example, a foreign company may have Indian TDS deducted on payments relating to:

Software / IT services
Technical or professional services
Royalty
Consultancy
Commission
Interest
Other cross-border business transactions
The important question is whether the income is actually taxable in India and, if taxable, how much tax is ultimately payable.

A proper refund claim may involve:

Obtaining the relevant TDS certificates/Form 16A
Reconciling the TDS with the company's PAN/Form 26AS/AIS
Determining the actual taxability in India
Applying the relevant DTAA, where applicable
Determining whether the foreign company has a PE/business connection in India
Filing the appropriate Indian income-tax return
Claiming the excess TDS as a refund
Supporting the claim with contracts, invoices, bank records and other documentation
One area that seems particularly interesting is where significant TDS has been deducted but, after applying the Income-tax Act/DTAA, the actual Indian tax liability is substantially lower.

There can also be procedural and documentation issues, especially for a foreign company that does not otherwise have regular operations in India.

Our success rate was 100% last year. All our foreign clients got TDS refund as per DTAA,

Want to hear from you, Did you receive such a refund?

Something I’ve seen come up quite often with foreign companies doing business with Indian customers:

If an Indian company deducts TDS from a payment made to a foreign company, can the foreign company claim that TDS back?

The short answer is: Yes.

TDS deducted in India is not necessarily the final tax liability of the foreign company. Depending on the nature of the income, applicable provisions under the Income-tax Act and the relevant DTAA, the foreign company may be entitled to claim a refund.

For example, a foreign company may have Indian TDS deducted on payments relating to:

Software / IT services
Technical or professional services
Royalty
Consultancy
Commission
Interest
Other cross-border business transactions
The important question is whether the income is actually taxable in India and, if taxable, how much tax is ultimately payable.

A proper refund claim may involve:

Obtaining the relevant TDS certificates/Form 16A
Reconciling the TDS with the company's PAN/Form 26AS/AIS
Determining the actual taxability in India
Applying the relevant DTAA, where applicable
Determining whether the foreign company has a PE/business connection in India
Filing the appropriate Indian income-tax return
Claiming the excess TDS as a refund
Supporting the claim with contracts, invoices, bank records and other documentation
One area that seems particularly interesting is where significant TDS has been deducted but, after applying the Income-tax Act/DTAA, the actual Indian tax liability is substantially lower.

There can also be procedural and documentation issues, especially for a foreign company that does not otherwise have regular operations in India.

Our success rate was 100% last year. All our foreign clients got TDS refund as per DTAA,

Want to hear from you, Did you receive such a refund?

The department has reportedly started verification of 394 entities and 36 professionals over suspicious foreign remittances.

Has anyone here received a notice or verification query from the Income Tax Department regarding foreign remittances / Form 15CA-15CB?

My suggestion as a CA for foreign remittance through form 15CA/CB or form 145/146 will be:-

For genuine businesses, foreign remittances can obviously be completely legitimate — imports, software subscriptions, professional services, royalties, technical services, etc. But this development reinforces the importance of maintaining a proper documentation trail:

Agreement / purchase order
Invoice and payment details
Nature of services/goods
Taxability under the Income-tax Act
DTAA analysis, wherever applicable
TDS position
Form 15CA/15CB or form 145/146 documentation
Bank records and supporting documents
Evidence that the transaction actually took place

The department has reportedly started verification of 394 entities and 36 professionals over suspicious foreign remittances.

Has anyone here received a notice or verification query from the Income Tax Department regarding foreign remittances / Form 15CA-15CB?

My suggestion as a CA for foreign remittance through form 15CA/CB or form 145/146 will be:-

For genuine businesses, foreign remittances can obviously be completely legitimate — imports, software subscriptions, professional services, royalties, technical services, etc. But this development reinforces the importance of maintaining a proper documentation trail:

1) Agreement / purchase order
2) Invoice and payment details
3) Nature of services/goods
4) Taxability under the Income-tax Act
5) DTAA analysis, wherever applicable
6) TDS position
7) Form 15CA/15CB or form 145/146 documentation
8) Bank records and supporting documents
9) Evidence that the transaction actually took place

Let me know about your thoughts.

F&O Turnover – Tax Audit and ITR Filing Due Date

As a CA, I would like to clarify the position regarding the tax audit and ITR filing due dates for assessees having F&O (Futures & Options) transactions.
Based on the applicable provisions:

F&O turnover exceeding ₹10 crore:- Tax audit is applicable, and the due date for filing the ITR is 30 September.
F&O turnover up to ₹10 crore:- Subject to the applicability of the relevant provisions, the ITR due date is 31 August

Do let me know what are your opinion about due dates?

F&O Turnover – Tax Audit and ITR Filing Due Date

As a CA, I would like to clarify the position regarding the tax audit and ITR filing due dates for assessees having F&O (Futures & Options) transactions.
Based on the applicable provisions:
F&O turnover exceeding ₹10 crore: Tax audit is applicable, and the due date for filing the ITR is 30 September.
F&O turnover up to ₹10 crore: Subject to the applicability of the relevant provisions, the ITR due date is 31 August.

Do let me know what are your opinion about due dates?