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Salary to non resident director

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paresh zatakia (Querist)
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19 September 2011 Dear Colleagues,
Mr.M (Italian citizen staying in Italy) is a director in his group wholly owned subsidiary in India.
He sits in Italy, takes all major decision sitting over there ( He Comes to India only for 5-6 days in a year).
He want company to pay directorship salary/remuneration in India which shall deposit in a bank
Account he will open in India.
Querry:
1)Is there any bar in making payment of salary to him?
2)Since the salary is going to be paid in India(but does not work in India), shall it be liable to TDS?
3)IF YES AT WHAT RATE?
Regards
c.a.paresh Zatakia
9833855518

CA Sachin D Jain

CA Sachin D Jain (Expert)
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19 September 2011 Dear Paresh,

Answers to your queries:

1) There is no bar in making payment of salary to a resident of Italy.

2) You would be required to check the provisions of DTAA between india and Italy in order to determine the rate of income tax payable by him.

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