There is an indian co. who sends its employees to its us subsidary for employment for 3 years. The payment is made by the Indian co. on whose payroll the employees are. The employees have to pay tax of 30% in US and as per the income tax act the employer has to deduct 30% as a tax. I know u can claim the DTAA benefit. But my question is, whether there can be a situation where i dont deduct the 30% tax from his salary as he would be left with only 40% of his income as salary although he would get the tax refund later on. My question is whether is there any way whereby i dont deduct tax at source from the salary of the employee?
CAclubindia
