Double taxation please advise
Apr 21st 2011, 1:19 pm
#1
Just Joined
Thread Starter
Joined: Apr 2011
Posts: 1
Double taxation please advise
Hi
I need to understand how double taxation works
I am doing a job in India and I know I will be taxed in India but they are taxing me not on the profit but on the whole value of the deal.
As the costs would come out of that total value I am therefore over paying tax
For example. To keep things simple, let's say the deal is worth 100 000 dollars. My costs are 80k so I should make 20% profit and pay tax on that of say 8k.
But India are taxing me 20% on the 100 000 so I only get 80k in the bank. I have therefore paid 20k in tax to India.
Will I get the 12k difference back When tax for the business year is calculated
Many thanks
Ron Gaunt
I need to understand how double taxation works
I am doing a job in India and I know I will be taxed in India but they are taxing me not on the profit but on the whole value of the deal.
As the costs would come out of that total value I am therefore over paying tax
For example. To keep things simple, let's say the deal is worth 100 000 dollars. My costs are 80k so I should make 20% profit and pay tax on that of say 8k.
But India are taxing me 20% on the 100 000 so I only get 80k in the bank. I have therefore paid 20k in tax to India.
Will I get the 12k difference back When tax for the business year is calculated
Many thanks
Ron Gaunt
Apr 23rd 2011, 9:24 pm
#2
Forum Regular
Joined: May 2009
Posts: 45
Re: Double taxation please advise
I think you might have more luck if you post this in India. You are here in South America.
