15 July 2010
We appointed one foreign national to work for us and she rendered her services in India only. However, since she does not have a bank account in India so she want a direct transfer of her stipend in her foreign bank account. Is it possible to remit the amount or it is illegal?
20 July 2010
the payment would have to be under FEMA, ie provided the agreement or terms of appointment state payment in foreign currency directly.
Further, there would be implication of tax as the service is rendered in India. whether the concerned person bears the tax or of the same is grossed up and borne by the entity is a commercial decision.
CAclubindia
