18 October 2014
Hi all, We are software company in India. Recently hired one employee(women) in US who is green card holder to work online with monthly salary 40 K.The employee want amount/payment in INR only crediting to Indian bank account and she told she wants to utilize the money in India only. Now,my doubt is Which is better option to pay the NRI?i.e. as salary or professional fee keeping in view TDS & income tax related provisions? Also pls suggest which type of bank account she has to open in India as she is NRI? Will import of service rules applicable in this case?
18 October 2014
Pay it as professional fee(fees for technical services). The bank account will be NRO account. Place of provision of service Rules will be applicable in this case.
18 October 2014
thanks seetharaman.So i has to deduct tds under 194j.So she has to apply for pan. Can u help me regarding import of service rules applicability and impact?
19 October 2014
Treat the payment as salary and deduct TDS u/s 192 so that you could avoid service tax payment also being employee service tax not applicable.
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