Tax on income earned in switzerland on deputation

yes your income is taxable in india and u will get tax benifight on paid tax in switzerland

subject to proper documention 

 

 

 

 

 

 

 

 

 

 

 

 

 

Read more at: /forum/tax-on-income-earned-in-switzerland-on-deputation-391442.asp

Subject to the provisions of Articles 15, 17, 18, 19 and 20, salaries, wages and other similar remuneration in respect of an employment as well as income in respect of professional services or other activities of an independent character, derived by an individual resident of a Contracting State, shall be taxable only in that State, unless the employment, services or activities are exercised or performed in the other Contracting State. If the employment, services or activities are so exercised or performed, such remuneration or income as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration or income derived by a resident of a Contracting State in respect of an employment, services or activities exercised or performed in the other Contracting State shall be taxable only in the first-mentioned State if: a. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year, and b. the remuneration or income is paid by, or on behalf of, a person who is not a resident of the other State, and c. the remuneration or income is not borne by a permanent establishment which that person has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. In above swiss and India Tax treaty ..para 2 there are 3 points .. a, b &c .. stilll I am liable to pay tax or is there any point of confusion? Because there are 3 clause not only 183 days one ...

The frame for reference for your question is Article 15 of India - Swz DTAA - I've added country names in brackets() as per your specific situation for ease of understanding: 

ARTICLE 15

DEPENDENT PERSONAL SERVICES

1. - Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State (INDIA) in respect of an employment shall be taxable only in that State (INDIA) unless the employment is exercised in the other Contracting State (SWZ). If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State (SWZ).

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State (INDIA) in respect of an employment exercised in the other Contracting State (SWZ) shall be taxable only in the first-mentioned State (INDIA) if :

(a) the recipient is present in the other State (SWZ) for a period or periods not exceeding in the aggregate 183 days in any 12 month period commencing or ending in the fiscal year concerned, and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State (SWZ), and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State (SWZ).

………………..

 

One thing is clear. If you are a resident of India for that period, income is taxable in India. 

As regards taxation in SWZ, it is taxable there as well and you can claim foreign tax credit as per Rule 128 of Income Tax Rules.

However, if all three conditions are satisfied, income is taxable only in India - you can file a nil income tax return in SWZ and claim a refund of withheld tax, and in India the question of claiming FTC will thus not arise. 

Specific fact evaluation is recommended.

Thanks!