MBA
58 Points
Joined February 2013
I Think
- You have to deduct Tax at Source in the same manner as you deduct tax resident employees. If Foreigner Employee have not PAN No. you have to deduct tax on rate non availability of PAN i.e.20%
- Normally no TDS liability is there when you have employees who are physically working outside India.
- Where salary is payable in foreign currency, the amount of the tax deducted is to be calculated after converting the salary payable into Indian currency at the telegraphic transfer buying rate as adopted by State Bank of India on the date of deduction of tax (Rule 26) read with Section 192(6).
It may be noted that this rule is applicable only for determination of TDS. However, in computing the salary income, the rate of conversion to be applied is the telegraphic transfer buying rate on the last day of month in which the salary is due or is paid (Rule 15).