USA Income Tax
This query is : Resolved
10 January 2020
Hi friends, Any one from Big 4 / MNC working for USA Companies... Pls help...
Salary is due but not paid in a US company. No tax is provided for. They continue to make provisions and claim it as an expense in Income statement but no provision for Tax. Salary is not paid. This is for owners so they did not demand salary to be paid as well.
They say salary is liable to tax only when paid in USA. So if you dont pay salary then it is not taxable.
In India salary is taxable as and when it is due or paid whichever is early.
I find this ridiculous, as i believe you cannot claim the salary expense if it is not paid and it escapes withholding tax as well.
But i could not pull the line item in their tax law where it says you either have to reverse the provision or provide and pay the withholding Tax. Pls help.
Salary is due but not paid in a US company. No tax is provided for. They continue to make provisions and claim it as an expense in Income statement but no provision for Tax. Salary is not paid. This is for owners so they did not demand salary to be paid as well.
They say salary is liable to tax only when paid in USA. So if you dont pay salary then it is not taxable.
In India salary is taxable as and when it is due or paid whichever is early.
I find this ridiculous, as i believe you cannot claim the salary expense if it is not paid and it escapes withholding tax as well.
But i could not pull the line item in their tax law where it says you either have to reverse the provision or provide and pay the withholding Tax. Pls help.
10 January 2020
In India also TDS on salary is deducted only it's paid, in noway it's different from US law. March salary paid in April is considered in next year taxable income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- TDS _Long term Capital Gain ref.sec 214 Table 2
- F&O reporting in ITR
- Residential status of non resident
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
