FEMA

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renu (Querist)
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16 March 2011 Q1 What are the Compliances related to appointment of an employee in Philippines for a company incorporated in India at its project office or liaison office who is also the resident of Philippines? And the provisions related remittance of his salary?

Q2 What are the Compliances related to appointment of a consultant in Philippines for a company incorporated in India who is also the resident of Philippines? And the provisions related remittance of his salary?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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17 March 2011 1. First and the foremost the compliance under FEMA for opening of project office or liaison office of Indian company outside India needs to be complied. The salary payment can be made to Philippines employee without any deduction of TDS if the foreign employee is a Non resident.

2.Consultant can be paid salary or professional charges per month. Normally there is no requirement under FEMA except that total expenses should not exceed 10% of average turnover for last 2 years.

Anuj
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