Is salary paid to a foreigner in india taxable?

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Mehera Arjani (Querist)
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17 October 2012 Hi,

My friend is a UK national who was sent to work as a marketing executive for his company in India and SE Asia. He was paid a salary in the UK and had to pay for his own accommodation and lodging in India.

UK tax law says that if the individual is out of the UK for a complete tax year, then the salary paid by his UK employer is not liable to tax in the UK and is issued a NT (No Tax) code.

However, he wants to know if he would be liable to Indian tax, and if so would he be able to claim for his accommodation and subsistence, business travel, etc. here?

I am an expert in UK personal tax, having worked for HM Revenue and Customs for 25 years there, but have not much knowledge of Indian tax. Please advise.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 October 2012 Taxability of income is as per the "residential status", in India. Salary had been paid in UK by the Indian Company. The key point is "for the services rendered by UK national in India" It will be made taxable in India. (The indian company must have done withhold tax from his salary.. haven't it? Please clarify for the more lucid answer.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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03 December 2012 In the present case TDS ought to have been deducted by UK Company as the services were rendered in India.

Other details can be explained if more information is provided.

Anuj
femaquery@gmail.com

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