Salary from USA co received in India
This query is : Resolved
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.
Message likes :
1 times
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.
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.
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
(Expert)
26 May 2017
Income will taxable in India under normal Slab rates applicable to Individual.
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!
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!
Message likes :
1 times
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
- Reward for festival
- Employee secondment
- Ito add credit side of bank
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- GSTR9 Annual Return
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Rent agreement of House of deceased person
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Import of Capital Machine
- Appointment of Auditor By Form ADT-1
- Upload Level ValidationITR3Category of Defect B/D
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- MSME Payment Sec.43B (h)
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
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
