Taxation of employee on secondment to uk

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Ninad

Service

31 Points Posted on 15 August 2015

An Indian IT company sends its employee to UK on a work permit on secondment. The period of stay is 90 days.

During this period he is on the payroll of the UK company. He gets salary and allowance as per his indian salary converted into GBP. Tax is also deducted on the salary. No indian salary or allowances are paid to him during this period of 90 days.

The employee returns back to India and his indian salary starts from the day he arrives in India.

With reference to A.Y. 2015-16

1. Is there any tax liablity on th UK salary

2. Should the UK salary income be disclosed in the returns filed in India.

3. Are there any specific returns to be filed in UK.

Thanks

Ninad

Replies (3)

shikhar

LEARNER

626 Points Posted on 15 August 2015

Hello,

If we assume above employees are resident and ordinary resident as per sec 6 (6) of income tax act then...

(1) Above salary from uk will be included in the total income of the assesse and it we taxable in india. But allowance are exempted.

(2) Yes it must be disclosed in the income tax return.

(3) check out what are the norms of return in uk

Thanks

shikhar

Ashok J

CA Final

848 Points Posted on 15 August 2015

Check out dtaa btween india n uk...if der is any benefit available..he may get tax credit in india for tax paid in uk..

Suren

ASE

109 Points Posted on 16 August 2015

Since his stay in India is more than 182 days for the FY 2014-2015, his status becomes resident and his world wide income will become taxable in India.

He needs to pay taxes in UK and then avail the tax credit in India while filing the returns .

FYI -- There is DTAA between India and UK.