Tax treatment - foreign citizen

Devendra (Chartered Accountant) (4775 Points)

17 January 2012  

Mr. XYZ is a Foreign Citizen who comes to India for a Project. He has been in India for more than 182 days during F.Y 2011-12. He receives $ 7000 per month as Professional Fees for the Project Work done in India, his Professional Fees are directly credited in to his Bank A/c which is in U.S.A. He does not have any Bank A/c  in India. He incurs all his expenses like Travelling, Mobile etc. through his credit card. 

1) What is the Tax Treatment in case of the above scenario?

2) If the Income is taxable, then can the Expenses incurred be claimed against the Professional Income?



Devendra Kulkarni