19 February 2011
Mr.X is an employee of XYZ Co.an indian co.registered office in india.Mr.X was sent to USA for one month to provide service to branch of XYZ ltd.what will be the tax impact for Mr.X if he is Resident,Resident but not ordinary resident and non resident in case follwing situation i)If he received salary from XYZ ltd. ii)If he received salary from branch of XYZ Ltd
Is Income accrues outside india and received outside for providing services to Indian Co.taxable in india?
20 February 2011
1. In case of a resident - Salary income will be taxable in any case.
2. In Case of NOR and NRI - Mr. X - Salary received, in connection with services rendered outside India ,from US Branch of XYZ Ltd. or Indian HO of XYZ Ltd. will not be taxable in India as it accrues and arises outside India and also being received there only.