Income earned in saudi arabia

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ALKA KUMARI GUPTA (Querist)

01 October 2012 If a person is earning in Saudi Arabia from Jan,2012 to till date. I want to know about his income is taxable in India or not. There is no tax deduction of that income in saudi arabia. Before jan 2012, he was working in India. His company was situated out of india and he did not go there any connection with indian subsidiary or branch of company.

Pl. provide me better suggession as we are in the process of tax submission for F.Y 2012-13

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

01 October 2012 u have not mentioned anything about residential status of the assessee. Going by the deatails given it appears that the assessee is resident in India. U also have not mentioned anything about the employer. However the answer to ur question will be decided as per article 15 of India-Saudi Arabia DTAA which reads as under
Article 15 : Dependent Personal Services
1. 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 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 State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, by an enterprise of a Contracting State may be taxed in that State.
IF STILL U R CONFUSED U MAY CALL ME.

CA MANOJ GUPTA
JODHPUR
09828510543

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