Query- International Taxation

Rahul (CA Practice ) (1818 Points)

21 June 2010  

Dear all

I have one Query.

Facts:

One of the employee of my client is a japanese and he is in India for the past 4 years that means he is resident in India.

Now he is going to retire and will recieve 10 Million Yen as Gratuity from the Parent Company. That Gratuity will be paid to him in his bank account in Japan.Nothing will berecieved in India.

His total tenure is 50 years with the Company. 46 years in Japan and 4 Years Continously in India.

Query:

Because that employee is a resident , how much gratuity recieved in Japan will be taxable in India. Is it full 10 Million Yen or it will be proportionate to his stay period in India.

 

Waiting for your reply