I Tax on dividend from company registered in Paris, France

[Guest]

I am a resident Indian. I have invested in a shares of a paris, France head quartered company 'Air Liquide' as an employee quota and this shares are having locked in period of 5 years.

This year company declared dividend of 2.5 euro per shares. For the individual staying outside france has to submit form 5000 to avoid tax deduction at source (which is 30% this year) and this form should be signed and stamped by the local(India) government.

My question is

01) Is dividend received from a registered company( Registered in Paris, France) having office in New Delhi where i am working as an employee is taxable to the receipient, under income tax rule of India.

02) If dividend issueing company provides certificate of tax deducted (30%) at source, How it helps me while filing my I-Tax return in India/claim refund(if eligible as per DTAA rule).

03) If from next year I don't want dividend issuing company to cut tax at rouce; where from I will get sign & stamp of I-tax. deptt. of India(i.e. office and responsible deptt./person of I-Tax deptt. in N. Delhi)

04) Is it advisable allow tax cutting at sourse in Paris,France or to pay I. tax in India as I see not much difference in Taxation, except additional education cess of 3% in india.

[CAGOPALJI AGRAWAL]

For a resident and ordinarily resident, the world income is taxable.

AI Summary

Taxation of foreign dividends: Indian residents must include such income, with foreign withholding credit available under DTAA. The enquirer asks if dividends from a Paris registered employer are taxable in India for a resident and ordinarily resident individual, noting that France withholds tax unless a form 5000 signed and stamped by local Indian authorities is supplied; the payer may issue a certificate of tax deducted. The recorded reply states the general principle that a resident and ordinarily resident is taxable on worldwide income, while procedural questions about using the foreign tax certificate, obtaining Indian signing authority for the form, and the advisability of foreign withholding versus Indian taxation remain raised but unanswered.