Payment of moving allowance in forex

Tax planning 430 views 4 replies

Hiring an employee Mr. X for Indian Co. from Swiss. Moving allowance (as part from accomadation reimbursements) is made in Swiss franc.will it be taxable in India??  Note Payment is done in December and he is hired as employee from Jan'14 onwards. Also, India Comapany and Swiss company are group company's

Replies (4)

Yes Karishma...it will be taxable since, it is an Indian income....so it will be taxable

Please ensure that you deduct the TDS. Moreover kindly see that you may his expenses payment in cash and in that caser, you need not to deduct TDS becaue it will be qualified as business expenses.

Originally posted by : Ankit
Yes Karishma...it will be taxable since, it is an Indian income....so it will be taxable

But transfer allowance are exempt by virtue of 10(14)

The amount paid by you to the swiss foreigner may not be consider as transfer allowance because here you need to see whether the employer employee relatioonship exist. If employer. employee relationship exist, then it may be consodered as exempt.


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