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taxability of accomodation living expenses paid for foreigne
1) We have availed the services of a UK national in advising our firm in various areas as well as for the Arbitration Center project.
2) We have made payments to him for his services when he was in UK (up to second week of June 2008), Thereafter he is in Chennai.
3) The firm is providing him accommodation, living expenses during his stay in Chennai, which could be for over two years
IS THE AMOUNT TAXABLE IN THE HANDS OF THE UK NATIONAL ?
Replies (2)
YES IT IS TAXABLE IN THE HANDS OF UK NATIONAL AS IT IS ACCRUED AND PAID IN INDIA
The accommodation, living expenses during the stay of the foreign consultant in Chennai, which could be for over two years, can be charged off as expenditure if it is directly settled by the firm in Indian rupees. It is not income for the foreign consultant.
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