13 July 2011
A COMPANY IS GOING TO OPEN A LIASON OFFICE IN GERMANY. IT IS ONLY A LIASON OFFICE AND NO BUSINESS WILL BE CARRIED OUT THERE AT THE BRANCH. ALL FUNDS FOR RUNNING THE OFFICE WILL BE SENT FROM INDIA. THE LIASON OFFICE ABROAD WILL SPEND ON SALARY, RENT, OTHER ADMINISTRATIVE INCLUDING COMMISSION AND CONSULTANCY AND TECHNICAL CHARGES ABROAD. WHETHER TAX IS DEDUCTIBLE BY THE INDIAN COMPANY ON THE PAYMENTS BY THE LIASON OFFICE TOWARDS SALARY, RENT, CONSULTANCY AND TECHNICAL CHARGES ABROAD. ALL EMPLOYEES OF LIASON OFFICE WILL BE FOREIGNERS.
13 July 2011
The company is not required to TDS in case of foreign employees rendering services out side India as the same is treated as income arising out side India and being received outside India to Non Residents.