We can claim TDS under withholding Tax

[MITSUI PRIME ADVANCED]

Dear Sir,

I come to know that we have paid Technical Service Fee to our foreign Company of M/s Mitsui Chemical Inc., Japan , services provided to Mitsui Prime Advanced , India. This is subsidiary of  Mitsui Chemical Japan,  without under any PE , of Fixed Base , as per DTAA we have deducted TDS 10% under Article 12 of DATT between India and Japan

Tax Deduction at Sources (TDS) every time deposited to Central Government Account

TDS Deducted by Mitsui Prime Advanced, India on payment of Technical Services, We can claim TDS of Mitsui Chemical Inc., Japan in India. because 70% capital involved in Mitsui Prime, India.

Please tell me your valuable secretion under  scenario.

Regards

Arjun Sachdeva

[Rama Krishana]

TDS deducted by Mitsui Prime is eligible for Adjustment with the tax liability of the M/s Mitsui Chemical Inc., Japan and would be available for refund the TDS so deducted is found in excess of total tax liability.

AI Summary

Withholding tax credit: TDS on technical services can be adjusted against the foreign recipient's tax liability and refunded. TDS deducted by an Indian subsidiary on technical service fees to a foreign parent under the treaty constitutes an available withholding tax credit that can be adjusted against the foreign recipient's Indian tax liability, and any excess TDS may be claimed as a refund; this position is presented assuming no permanent establishment in India and noting the subsidiary's significant capital participation.