Earnings outside india

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2015 One of Our client, was providing professional services to a I.T company in India up to 14th December 2014.After 14th december till date he is working in Japan with a German based company. The company does not have any operations in India and he is earning his salary in Euro.
Kindly suggest what would be the tax implications in India for the salary earned outside India as there also exists a DTAA treaty between India and Japan.Till date there is no tax deducted from salary earned in Japan, as their calendar year is the financial year.
His status of residence is Resident Indian as he has stayed in India for more than 180 days
Hence, whether his salary earned in Japan would be taxable in India?if yes, then what about DTAA treaty?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 July 2015 His salary earned in Japan is taxable in India. As per DTAA salary earned in Japan for the period ending 31st March 2015 is not taxable in Japan.

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2015 Thank you for your reply. Please elaborate.
As per our understanding of the provisions of DTAA- article 15...it is mentioned as under
Subject to the provisions of articles 16, 18, 19, 20 and 21, 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 Contracting State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State.
Hence, it would be taxable in place of exercise i.e Japan

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 July 2015 Your quoting 15 1 refer 15 2 it is overriding 15 1.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now