Remuneration from abroad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2013 Dear experts one of the client is in receipt of salary from Singapore, where he is a partner, the firm in Singapore send him salary after paying the tax on the same in Singapore, Will this amount taxable in India?

pl clarify

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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17 November 2013 For the taxability of any income in India, the residential person of the person is to be seen.

In case your client is a RESIDENT of India as per the Income TAx Act, then the global income would be taxable in India.

However, please note that any taxes paid/ deducted in Singapore can be claimed as Foreign TAx Credit.

Please expedite the status of your client.

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 Thank you very much sir, the assessee is ordinary resident in India, and also have business income in India.

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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19 November 2013 IN such a case, the global income would be taxable in India.

You may also refer to the India-Singapore DTAA which clarifies the same.

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 the relevant fiscal year ; 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. In the case of a recipient who satisfies all the conditions under sub-paragraphs (a), (b) and (c) of paragraph 2, if his remuneration is deductible as an expense against fees for technical services (dealt with under Article 12) derived by his employer and the employer has no permanent establishment in the other Contracting State, the remuneration may, notwithstanding the provisions of paragraph 2, be taxed in that State. In such case, the tax so charged shall not exceed 15 per cent of the gross amount of the remuneration.

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