Salary earned in uae by resident of india
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 August 2012
MR X left India on 01/12/2011 to UAE for employment and he is in payroll of the UAE company which is registered & incorporated in UAE ie the salary will be credited into an UAE bank account.
As the job is said to be primarily based out of Mumbai but on UAE payroll, so does that mean that the entire amount will be tax free?I heard something like the employee should spend atleast more than 183 days in UAE so that the salary becomes tax free in India.Please clarify this.Also the UAE firm does not have a legal entity in India.MR X is resident in india for IT purpose as he was in india from birth till 30/11/2011.
I think as per DTAA between INDIA & UAE salary from 01/12/2011 to 31/03/2012 is not taxable in india as the following cumulative conditions is not fulfilled which is given below :
There is double taxation agreement between India and UAE . Article 15 of the said Double taxation Avoidance Agreement is regarding the Salary and Wages . It says that salary received by an Indian is taxable in India only if following conditions are fulfilled, tax shall be charged only in that state.
Indian is in UAE for less than 182 days ; and
the remuneration is paid by, or on behalf on, an employer who is not a resident of UAE; and
the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
Also Mr X plans to remit the amount periodically from UAE bank account to my Indian bank's savings account.Any tax implications here?
As the job is said to be primarily based out of Mumbai but on UAE payroll, so does that mean that the entire amount will be tax free?I heard something like the employee should spend atleast more than 183 days in UAE so that the salary becomes tax free in India.Please clarify this.Also the UAE firm does not have a legal entity in India.MR X is resident in india for IT purpose as he was in india from birth till 30/11/2011.
I think as per DTAA between INDIA & UAE salary from 01/12/2011 to 31/03/2012 is not taxable in india as the following cumulative conditions is not fulfilled which is given below :
There is double taxation agreement between India and UAE . Article 15 of the said Double taxation Avoidance Agreement is regarding the Salary and Wages . It says that salary received by an Indian is taxable in India only if following conditions are fulfilled, tax shall be charged only in that state.
Indian is in UAE for less than 182 days ; and
the remuneration is paid by, or on behalf on, an employer who is not a resident of UAE; and
the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
Also Mr X plans to remit the amount periodically from UAE bank account to my Indian bank's savings account.Any tax implications here?
26 August 2012
honestly speakng you need personalised consultancy.
also, i wud sggst not take action based on advice given in open forum where any one can become expert and their advice is based on their feelin than provision of the reevant act. ultimately u will be the sufferer.
also, i wud sggst not take action based on advice given in open forum where any one can become expert and their advice is based on their feelin than provision of the reevant act. ultimately u will be the sufferer.
24 December 2012
Facts are not clear,but most probably the salary shall be taxable in india.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- Section 50-fixed asset-->building ceases to exist
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
