One of my client, staying in India is receiving income from a Co. registered in Singapore and it does not have a PE in India. Though the salary is fixed payment every month, the receipts in his account vary due to forex fluctuations. He provides some consultancy service.
Can it be declared as Professional Income to claim deductions of some business expenditure, though received as Salary from that Co., or should it be considered as Salary Income only?
Whats the contract between them? That will decide the nature of income.
There is an employee - employer relationship as per contract.
So, Employer gives SALARY to employee !!
If possible, the contract can be modified to suit your client based on services provided, the same can be received as professional fees, in future.
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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YOGESH KAPOOR AND ASSOCIATES
New Delhi
B.Com
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CAclubindia
