Professional or technical fee /salary received abroad

Dear Sir,

1. Going by your descripttion it should be taxable as professional income whether in Singapore or India. Going by the DTAA if it is professional income it is taxable only in India and if it salary income, by any chance, it is taxable in Singapore.

2. If taxable in India as professional income, your travel(both flight and local conveyance) expenses, accomodation, food and other living expenses can be claimed as expense. Personal expenses cannot be claimed as deduction. May be you can try explaining the expenditure out of Forex you purchased, if any. For the rest of your income you have to pay taxes

Regards,

Dear Ashok Kumar Ji,

Thanks so much for your response. Please see my comments:

1- Do you mean even though I was there only for three months, if it's salary it will be still taxed in Singapore only?

2- I didn't buy forex in India as I had a bank account in Singapore where my income was directly deposited. 

Kind Regards

No need to worry , as per DTTA you do not need paid doublly tax in both the country on same income. 

Ur case is little tricky, in a comment box it will not possible to explian.

Although i will suggest to communicate to your jurisduction AO.

May be u will be get more detail info.

Yes Sir, As per Article 15 of India - Singapore treaty, Remuneration received by a person is taxable in the country where he is resident only if all the following conditions are satisfied (due to use 'and'):

1. Period of stay in other country is less than or equal to 183 days, and

2. Employer is not a resident of the other country, and

3. Remuneration is not borne by the PE or base setup by the employer in that country.

Otherwise, remuneration is taxable only in the other country and not in the country of residence. So check whether your income is a kind of remuneration or fees for technical service. Based on that the country of tax incidence will be determined. And i dont think you can claim any other expense than what i listed out in my previous reply, if it is taxable as professional income in India

Dear Ashok ji,

Thanks so much for your reply. Its really helpful. I think its an employment income as it was taxed as employment income as per Singapore IT return. In this case can we safely assume that irrespective of the residency status in Signapore or India it will be taxed only in Singapore?

Thanks once again.

Best Regards

Agrawal

Yes, if it is remuneration then it is taxable only in the country where it is arising. and if your income has already suffered tax while payment, it is better to file a return there and show that income and tax as foreign income and taxes paid outside India in the Indian return.

Thanks once again.

I have already filed my return there and have an assessment order too. 

Regards