Prakash Rao (Director) (32 Points)
17 November 2010We have deputed our Employee to Switzerland on a long term work permit. He needs to be paid monthly salaries. Since the Consultant is on long term work permit, he pays his taxes in Switzerland as per local laws.
However when we remit the payment from India are we supposed to deduct the TDS?
Please clarify.
sahana Murthy
(Student)
(123 Points)
Replied 20 November 2010
Yes. The employee's salary gets taxed in India by virtue of his employer being an Indian company. However DTAA needs to be checked before any further conclusions are drawn.
Kindly consult your CA
Regards
Sahana Murthy
CA Shiv
(Business Controller)
(2987 Points)
Replied 21 November 2010
Yes you need to deduct Tds and also the employee will get benefit from DTAA in india on later stage... I think he will be there for L Visa...
Actualy its same case with me...
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 10 May 2011
No need to deduct TDS if the employee is posted outside India.
Anuj
0-9810106211
CAclubindia
