Taxability of salary of uk employee d to india
This query is : Resolved
19 July 2014
Uk employee is deputed to india for 120 days (status Non Resident). In UK he has been issued NT Code hence his salary is not taxable in UK.
As per IT Act this salary is deemed to accrue or arise in India, hence Taxable in India.
However, As per DTAA since he has not stayed in india more than 182 days, his salary can not be taxed in India,it may be taxable in India.
Beneficial to assessee is DTAA hence in India it is not taxable.
To summarise his salary income is not taxable in both country.
Is this view correct or I am missing any other provision which makes it taxable in India.
As per IT Act this salary is deemed to accrue or arise in India, hence Taxable in India.
However, As per DTAA since he has not stayed in india more than 182 days, his salary can not be taxed in India,it may be taxable in India.
Beneficial to assessee is DTAA hence in India it is not taxable.
To summarise his salary income is not taxable in both country.
Is this view correct or I am missing any other provision which makes it taxable in India.
19 July 2014
the 182 day condition is applicable only if all the other conditions prescribed in clause 2 of article 16 are satisfied cumulatively. So, in order to say that salary is not taxable, you require that the salary is paid by or on behalf of an employer who is non-resident in india and the salary so paid is not claimed as an expense by the employer in India.
If the above conditions are not specified, the salary shall be taxable in India.
If the above conditions are not specified, the salary shall be taxable in India.
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21 July 2014
All 3 conditions are satisfied. Is it not taxable in either of the country or is there any Case law or ruling which specifies that the dtaa is to avoid double taxation not for giving relief to assessee from both the contracting states. Since in this case Income is taxable in none of the countries.
21 July 2014
All 3 conditions are satisfied. Is it not taxable in either of the country or is there any Case law or ruling which specifies that the dtaa is to avoid double taxation not for giving relief to assessee from both the contracting states. Since in this case Income is taxable in none of the countries.
21 July 2014
All 3 conditions are satisfied. Is it not taxable in either of the country or is there any Case law or ruling which specifies that the dtaa is to avoid double taxation not for giving relief to assessee from both the contracting states. Since in this case Income is taxable in none of the countries.
21 July 2014
Dear Abhilasha,
See if this helps you
https://www.kpmg.com/IN/en/services/Tax/FlashNews/KPMG-Flash-News-R-Rajagopal.pdf
See if this helps you
https://www.kpmg.com/IN/en/services/Tax/FlashNews/KPMG-Flash-News-R-Rajagopal.pdf
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