Tds on salary of nri

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P.C. Joshi (Querist)

18 February 2013 An Indian Company has appointed a foreign citizen on a retianership basis/contractual employment for a period of 1 year for a research project w.e.e.f 1st Jan 2012 in NeW Delhi office. monthly salary is Rs 1.50 lacs. What is the liability of deduction of TDS whether it is mandatory for the person so appointed to obtain PAN.

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 February 2013 answering this on the basis of the DTAA between India-USA, salary shall be taxable in India. The liability to deduct TDS shall be under 192B. And yes, it is mandatory for the foreign citizen to apply PAN.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

19 February 2013 Here the question needs to be answered whetheer there is employer employee relationship between the Indian company and foreign citizen.

If yes then PF ,will come into picture.

Anuj
femaquery@gmail.com

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 February 2013 Anuj Sir,

I have assumed here that since the question mentioned "salary to NRI", we can go ahead that basis.

As u rightly said, in case there is any employee-employer relationship, PF may come into the picture depending on the applicability of PF act on the Indian company.

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