Tax liability for Engineer (RNOR status) and Employer.

you will be taxed for salary earned in india as per section 9 of income tax which says:

9(1)(ii)

income which falls under head salary if earned in india

for services rendered in india. 

Even services are rendered remotely , situs of service in india so taxable in india

Your employer may have to fulfil withholding tax obligations for salary paid to you. You will also be regarded as agent of your NR employer.u/s 163 of IT act

sudarshan CA

Originally posted by : sudarshan
	you will be taxed for salary earned in india as per section 9 of income tax which says:   9(1)(ii) income which falls under head salary if earned in india for services rendered in india.  Even services are rendered remotely , situs of service in india so taxable in india   Your employer may have to fulfil withholding tax obligations for salary paid to you. You will also be regarded as agent of your NR employer.u/s 163 of IT act   sudarshan CA

Thanks! Sudarshan for taking the time to reply. I am confused now because I was going through your answers for one other query and here is how you answered it. Here is the link.

/forum/details.asp?mod_id=40136&offset=1

Can you please go into detail about the differences in situation?

thanks and regards,

i am happy that you are able to see the "link" of my previous reply. After I gave my view to the query  you are referring to, there was a clarification in one of the tax magazine that working in India thru internet, may also be deemed to be working in India as the employees physical presence may be treated as services rendered in india.( I gave my views previously as the section says "service rendered in india", it is not clear whether the services are to be utilised in india or not.)