Salaries on abroad employees

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Muthu Aravind (Querist)

27 June 2008 i need a clarification pls help me.
Our client company is located in a sez unit .it is a sister concern of a abroad company.Abroad workers from parent company are working here.butin pay roll of this sister concern,thier names are not included. but the company gives them some amount as allowance to go thier country thrice in a year.they accounted this amount as vocation allowance under emplyoee cost. is it right ?

Amit Bajaj

Amit Bajaj (Expert)

27 June 2008 Is there an agreement, between the Company and sister concern to pay these employees? Whether the salaries received by these employees are taxed in India?
Whether th amounts paid to these employees is reimbursable from parent company?

I think based on your responses to above questions you might get the right treatment.

Muthu Aravind

Muthu Aravind (Querist)

27 June 2008 salaries received by this employees are not taxed in india.
there is a agreement between both companies.
It is reimbursable by the parent company

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