Dtaa + tds
This query is : Resolved
ankur anand
(Querist)
25 March 2018
Dear Expert,
My company is a subsidary of a company which is incorporated outside India. We are reimbursing certain expenses to our parent company which they incur in india. Those expenses are in the nature of salary. These people come and work in india under the payroll of US parent company and Indian company reimburses the expenses back to US parent.Kindly advice me are we suppose to deduct TDS on salary for those employees?
Regards,
Ankur anand.
My company is a subsidary of a company which is incorporated outside India. We are reimbursing certain expenses to our parent company which they incur in india. Those expenses are in the nature of salary. These people come and work in india under the payroll of US parent company and Indian company reimburses the expenses back to US parent.Kindly advice me are we suppose to deduct TDS on salary for those employees?
Regards,
Ankur anand.
CA R SEETHARAMAN
(Expert)
25 March 2018
Article 16-Dependent Personal Services
• Salaries taxable in the state where the employment is exercised(source state).
• Not taxable in source state if:
- Stay does not exceed 183 days;
- Remuneration paid by non-resident employer; and
- Remuneration not borne/deducted/deductible by PE of employer in source state.
No TDS applicable if stay not exceed 183 days.
• Salaries taxable in the state where the employment is exercised(source state).
• Not taxable in source state if:
- Stay does not exceed 183 days;
- Remuneration paid by non-resident employer; and
- Remuneration not borne/deducted/deductible by PE of employer in source state.
No TDS applicable if stay not exceed 183 days.
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