Turf Club will appoint Australian Stipendiary steward on 2 years contract. Who will stay in India for 300 days each year. He will receive monthly Fixed pay, free accommodation, return flight once a year, all tax, gst be borne by club. He is taking PAN Card. What Section 194 J, 195 will apply. How to lower cost to company. Will it be salary or professional retainership fees. He will report to Stewards. Please guide.
For an Australian Steward staying 300 days and reporting to the club, the engagement is likely a Salary (Sec 192) arrangement. Section 195 applies for non-resident payments, but 194J is only for residents. To lower CTC, avoid "Net-of-Tax" deals to prevent expensive "Grossing Up," and prefer the Salary route to exempt the payment from 18% GST RCM.
Respected Sir
Many thanks.
This Australian Steward is an authority. Hence we are unable to negotiate much. He wants tax free salary package, rent free accommodation for 2 years, return flight once a year, 2 months holiday. He will stay here 10 months each year. Hence residential status changes. He will obtain PAN
GST on RCM can be paid by us but doubtful about input tax credit. Since reporting structure vests with Club, my reading is Section 192
Not any other Section.
Kindly guide
Regards,
J Bandyopadhyay
Also he is aged 73 years
No social security scheme applies.
Regards
The Australian Steward mentions about Australian income tax on Global income, though India collects tax on professional fees at India. Can Indian contractor also bear additional tax to be borne by him in Australia. Then being a perquisite, again that amount to be subject to tax. TDS at India will get reflected in Form 26 AS. That is sufficient to claim credit under DTAA
PLEASE GUIDE
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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