DTAA with USA

[SANTHANA KRISHNAN]

SIR,  pl explain - how to make use of  DTAA with USA. the company in USA is giving us tech service at USA - how we can avoid double taxaton - its methodology of operations.

thanks

J R

7299162725

[Anuj Gupta]

Hi J R,

 

First and foremost obtainTax Residency Certificate (TRC) from Income Tax department(IRS) of your foreign client, to become eligible to use the DTAA.

 

Then also obtain a NO PE Certificate from Foreign Company on its letter head.

 

In your case , most probably, the TDS liablity should not be there.

 

Anuj

[email protected]

+91-9810106211

AI Summary

Tax Residency Certificate enables DTAA relief: obtain TRC and no PE confirmation to mitigate withholding tax exposure.
Obtain a Tax Residency Certificate from the foreign company's tax authority and a written No Permanent Establishment (No PE) Certificate from the foreign company; with those documents, withholding tax (TDS) liability in India is likely to be obviated or reduced under the India-US DTAA, subject to treaty conditions and procedural compliance.