07-18-2011, 04:57 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by student_of_law</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by hassan22</i>
<br />i think that the addition is only for calculation of rate and when foreign tax comes out as lesser of the two, then that shall be the only tax.
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Please explain your point of view with example and also refer to the words of s.103 that supports your interpretation.
As far as I have read it, s.103 no where says that tax payable is lesser of the two. It says foreign tax credit allowed is lesser of two (foreign tax paid & tax payable). And we all know that tax credit is the amount that we subtract from tax liability to ascertain net tax payable.
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sorry for that i got it totally wrong
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by hassan22</i>
<br />i think that the addition is only for calculation of rate and when foreign tax comes out as lesser of the two, then that shall be the only tax.
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Please explain your point of view with example and also refer to the words of s.103 that supports your interpretation.
As far as I have read it, s.103 no where says that tax payable is lesser of the two. It says foreign tax credit allowed is lesser of two (foreign tax paid & tax payable). And we all know that tax credit is the amount that we subtract from tax liability to ascertain net tax payable.
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sorry for that i got it totally wrong
