Tax on income earned i n switzerland on deputation model

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This query is : Resolved

ANKIT GARG (Querist)

21 May 2017 Team,

Could you please help me clarifying my query on salary income earned in Switzerland is taxable in India ?
Below are the points referring to above.
1. Stayed in Switzerland on deputation model for 80 days in previous fiscal year.
2. My employer is registered in India & Switzerland both and it's origin is US.
3. I have payed 11.50% tax to Switzerland government on my salary income.
4. My India PF was deducted from my Switzerland salary for the time I stayed in Switzerland.
5. There is no tax return done by Switzerland government after I left the country.

I tried contacting many CA's but everyone has different opinion over this, some has suggested that you income is taxable in India as per Indian taxation slab and tax already payed in Switzerland will get adjusted in final taxable amount.
Some has suggested that if you have already payed taxes in Swiss then you are exempted from taxation in India and you only file return on the period you stayed in India in last fiscal year and amount you earned in India.

Ankit

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 May 2017 you are liable for tax in India on whole income including the income earned in Switzerland. You can claim credit for the tax paid in Switzerland while computing your Indian tax liability.

ANKIT GARG

ANKIT GARG (Querist)

22 May 2017 Ok, but my form 16 generated by my employer doesn't include swiss salary ... it only has Indian salary and TDS details ... still I have to disclose foreign income while submitting ITR ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 May 2017 doesnt matter what your employer has done (unless he has shown the salary paid in Switzerland) as foreign posting allowance. So check with HR. In case it has not been covered as foreign posting allowance, then include the amounts received in Switzerland (gross amount) in the income.

ANKIT GARG

ANKIT GARG (Querist)

22 May 2017 Subject to the provisions of Articles 15, 17, 18, 19 and 20, salaries, wages and other similar remuneration in respect of an employment as well as income in respect of professional services or other activities of an independent character, derived by an individual resident of a Contracting State, shall be taxable only in that State, unless the employment, services or activities are exercised or performed in the other Contracting State. If the employment, services or activities are so exercised or performed, such remuneration or income as is derived therefrom may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration or income derived by a resident of a Contracting State in respect of an employment, services or activities exercised or performed in the other Contracting State shall be taxable only in the first-mentioned State if:
a. the recipient is present in the other State for a period or periods not exceeding in the
aggregate 183 days in the fiscal year, and
b. the remuneration or income is paid by, or on behalf of, a person who is not a resident of the
other State, and
c. the remuneration or income is not borne by a permanent establishment which that person
has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an
employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

Above is treaty between swiss and India .. para 2 has 3 points a, b & c ... these points also indicates that I am liable to pay tax ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

22 May 2017 i have already told you what has to be done in your case.

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