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Whether credit of DDT availed by foreign Investor?

Started by Bhumin, April 25, 2012, 01:32:40 PM

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Wheather DDT paid by Indian co. that DDT credit availed by Non resident Investor in Foreign counrty?

Yes, if DTAA allows to do so.
Yes, As this income not chargeble in foreign country.
NO,as this dividend is always taxfree in hands of Foreign investor.
NO, DDT is withholding tax which is paid by Indian co in behalf of all investor. It is statutory liability of Indian co and Foreign investor has to bear the same(i.e. no DDT Credit allowed) irrespective of Dividend is taxable in foreign country or not.
We have to ask the same question to AAR authority.
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Bhumin

April 25, 2012, 01:32:40 PM
Dear All,

Whether credit of DDT availed by foreign Investor?

Mr John is foreign investor who is investing in Indian Co Ltd(ICL)  through FDI and earned income on which ICL paid 33.33% Tax plus DDT on distribution of Dividend.

So Mr John can avail DDT Credit in his home country?
or
Same Dividend income is taxfree in hands of Mr John.

Thanks,
Bhumin Mehta.

ashutosh majumdar

#1
May 09, 2012, 12:32:18 AM
Which country? Is there anything in the Double Taxation treaty? The DDT is paid by the company for itself and not for the shareholder. This was held by the Bom HC in Godrej in the context of section 14. So, the shareholder has not "paid" the DDT and he would not be entitled to claim credit ordinarily speaking subject to the contrary in the Double Taxation Treaty.
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