Tds on salary payment to a non resident working abroad for

This query is : Resolved

SAJI (Querist)
Follow

18 June 2014 MY COMPANY APPOINTED A NON RESIDENT (NEPAL CITIZEN) AS ITS EMPLOYEE (MARKETING EXECUTIVE) IN NEPAL AND AGREED TO PAY SALARY IN FOREIGN COUNTRY IS IT SUBJECT TO DEDUCTION OF TDS ?

PLS ADVISE WHAT ARE THE TECHNICAL THINGS TO BE TAKEN CARE?

THANKS IN ADVANCE.

sudarshan

sudarshan (Expert)
Follow

18 June 2014 tds not applicable as work not done in india and he is NR

SAJI

SAJI (Querist)
Follow

18 June 2014 Thanks Sudarshan.

But we do not have any office in Nepal and payment is going from India only. Whether this will make any difference?

Rupesh Jain

Rupesh Jain (Expert)
Follow

18 June 2014 you have to deduct the tds u/s 195 @ 10%
if he have indian PAN otherwise @ 20%

Message likes : 1 times

sudarshan

sudarshan (Expert)
Follow

18 June 2014 unless you establish office in nepal, you cannot pay salary. it will be consultancy fee only

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

17 January 2015 Dear Rupesh Ji

Section 195 is not applicable on payment of salary. Please read section 195 clearly from link given below:

https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102120000000037260&k=&IsDlg=0

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now