Akanksha Agarwal (Article) (49 Points)
04 September 2013Hello everyone,
Please provide an appropriate solution to the below stated querry.
Whether the salary received by a UK professional in India, during his one year stay in India, is covered under DTAA between Uk and India. IF yes, then what are the benefits or tax reliefs available to such foreign national. Salary is received in respect of services rendered in India.
Thanks in advance.
S.R.Associates
(Tax & Investment Consultants)
(115 Points)
Replied 04 September 2013
By your question,It is clear that he is Resident but non ordinarily resident so income received and accrued would be taxable in india.
Akanksha Agarwal
(Article)
(49 Points)
Replied 04 September 2013
Thanks for your reply.
There is an Article 16 in DTA between India and UK, which says that such salary shall be taxable in UK and can be taxable in India, subject to the fulfillment of certain conditions. Please reply in light of the above mentioned article.
S.R.Associates
(Tax & Investment Consultants)
(115 Points)
Replied 07 September 2013
My Pleasure,Akanksha
As per Article 16 of the DTAA between India and UK on Dependent Personal services, "Salaries, wages and other similar remuneration derived by a Resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State.
Since,He has been employed in india,He will be taxed in india.
S.R.Associates
Tax & Investments Consultants
CAclubindia
