Australian Stipendiary Steward is engaged in Kolkata Club for 3 months. He is having Indian PAN. 10 Years back he also came to other club. If India employer wants to bear income tax on his engagement fees, what tax rate and Section will ideally apply.
Please guide
Is it common practice in India to bear tax on foreigners engagement as they do not want to take any liability here.
For an Australian Stipendiary Steward engaged short-term, Section 115BBA (read with Section 194E) applies at a base rate of 20% plus 4% cess (effective 20.8%). If the host club bears the tax, Section 195A mandates grossing up the fee to calculate TDS. Bearing foreign experts' Indian tax liability via grossed-up contractual terms is a common and established practice in India.
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