Anyone has experience of Indian Gov. Tax Portal?

A client in Indian has requested we provide a form 10F to eliminate a withholding tax charge.

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Hi

A client in India has requested my company to provide various documents to the Indian Govenment using a tax portal so we wont be charged withholding taz and to obtain a "Form10F". I am able to provide the documents that are required, but when I have uploaded the documents, provide the 3 code verifacation (using a mobile phone and PC) a message is shown stating there is a error on the server.  I have tried multiple times and emailed the tax authorities, but the problem still happening.

We may go ahead with the project, but the client will withold payment of around 45% of the total remittance and pay over to the Indian Government. As there is a a tax treaty between India and the UK, how easy would it be to get the tax repaid back to us and how long would the process take?

Thanks

 

Replies (8)

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By Paul Crowley
02nd Apr 2024 15:24

Talk to your accountant. If he gets the answer wrong, then his PII will help out.

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Replying to Paul Crowley:
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By Matrix
02nd Apr 2024 15:45

I don’t think the PII would cover Indian tax systems. A firm specialising in these submissions would be required. I certainly wouldn’t want to be on the hook for 45% withholding. The firm could also help recover any tax deducted.

OP - My client is submitting one but I only provided the UTR and certificate of residence. I don’t think they have tried to file yet. I assume you chose the correct option depending on whether you are required to have a PAN or not.

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Replying to Matrix:
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By FactChecker
02nd Apr 2024 16:09

Coverage of the PII will usually depend on information given at the time of renewal which, depending on size/nature of practice, *might* cover this situation.

Nevertheless, Paul is right with regard to the 2nd-part of OP's question:
"As there is a a tax treaty between India and the UK, how easy would it be to get the tax repaid back to us and how long would the process take?"

There are far too many unknowns here (even the type of UK entity and which UK tax, let alone nature of the business/transactions and goods involved, and which clauses are being invoked at the Indian end) to do anything sensible without obtaining specialist professional advice. And if that advice is outside the comfort of OP's accountant, they should be best placed to sub-contract it or provide a contact.

Of course OP can continue attempts at submission but, even if 'successful', how certain will they be as to the status of any payments received from India?

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Replying to FactChecker:
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By Matrix
02nd Apr 2024 16:24

I don’t really know what either if you are suggesting the UK accountant can assist with, other than obtaining the certificate of residence which the OP must already have if they are at the submission stage? The OP can readily find local firms to assist through a search.

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Replying to Matrix:
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By FactChecker
02nd Apr 2024 17:14

"what .. you are suggesting the UK accountant can assist with?" - well possibly knowledge, experience, contacts (TBH I'm not sure what you're querying)?

Of course "OP can readily find local firms to assist through a search", I was merely trying to hint that there are quite a few practices in the UK run by dual nationals of both countries - and that even the smaller of these may specialise in the DT aspects (or know someone who does).
At the back of my mind was that this might not be a one-off for OP - in which case making those contacts now could turn out to be a wise use of their time.

Mind you there's always materiality ... 45% of a one-off order for £100 is a bummer but not really important, whereas 45% of an initial order of £100k that is hoped to lead to further orders ...

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Replying to FactChecker:
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By Matrix
02nd Apr 2024 17:21

I wouldn’t be happy if a client only approached me at this stage. As I say, a quick search brings up firms who can help.

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Replying to Matrix:
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By jjay72
04th Apr 2024 18:49

Hi - Thanks for your response. I have been able to get a UTR and certificate of residence, it just getting the portal to accept the documents.

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By kim.shaw-and-co.com
02nd Apr 2024 19:00

You need to hold a Certificate of Residence from HMRC alongside completion of the 10F - and to check the Business Profits article in the DTT applies to your supplies.

https://www.gov.uk/guidance/get-a-certificate-of-residence

Then, and this is usually the most difficult part, you also need to get the client to actually pay !

I wouldn't proceed to suffer the WHT and try to recover it personally.... since it's a tax levied on turnover rather than profit you would have to apply for a tax refund from the Indian authorities. Good luck with that !

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