Salary from USA co received in India

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Sarvesh (Querist)
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26 May 2017 Hello sir/madam, Mr.X a resident of India, placed by an USA company, he get his salary in US dollar in Indian account. Suppose he is earning 15L from this co. How the income tax should be calculated ? Is there any other option to save tax ? thank you.

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Abhinav

Abhinav (Expert)
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26 May 2017 The facts in the query are not adequate. Please answer following questions:

Where is the services rendered?
What is the exact period/duration for rendering of service?
Who is paying you - Indian company or US company?
Question pertains to which financial year?
What is your residential status as per the Income Tax Act for that year?

The question needs to be examined from Income Tax Act as well as India USA DTAA to come to a right conclusion as regards taxability of the income in India.

Sarvesh

Sarvesh (Querist)
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26 May 2017 Sir, answer to yours question is as follows :

Sarvesh

Sarvesh (Querist)
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26 May 2017 He is employed by an USA company as an employee. 1. Service is rendered in India 2. As he is employee , continious service. 3. Salary will be credited in his Indian bank account by USA company 4. Current FY 17-18 5. Resident Thank you sir

Studentsca

Studentsca (Expert)
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26 May 2017 Income will taxable in India under normal Slab rates applicable to Individual.

Abhinav

Abhinav (Expert)
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29 May 2017 Thanks for the details.

I agree with Studentsca, since the services are rendered in India, the salary is taxable in India.

Asides, from the USA employer's point of view, there may be TDS implications u/s 192 that it needs to be concerned about. Also, this arrangement can make the employee a Permanent Establishment (PE) of US company in India, and attributable profits can be taxed in India. Also, if employee is working remotely, it can also cause concerns under FEMA. Specific fact evaluation is advised.

Thanks!

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