TDS applicable on Non resident person salary

Dear Expert,

Our projects are going on foreign country, we have hired some persons in foreign country as salary. We are giving salary from India.

My question, if we book this salary in India, then TDS is applicable on their transaction?

 

 

 

Replies (4)
Quick Summary
This discussion explores whether Tax Deducted at Source (TDS) applies to salaries paid from India to non-resident employees working abroad. Experts suggest TDS is generally applicable if the income is considered earned in India, referencing Section 195. However, there's a counterpoint that TDS is only deductible on income chargeable to tax in India, implying no liability if the payee is non-resident and the income isn't taxable in India. A specific case is raised about an employee working in India temporarily before moving to a US subsidiary.

Yes, since he is earning income from India he is liable to pay tax, hence tds should be deducted accordingly.
Check non resident taxation once .

Payment to non resident may be covered by section 195
In my opinion, only in respect of income chargeable to tax in India, TDS has to be deducted. if the payee is non resident, then no liability to deduct TDS
Dear expert Professionals, Our company Salaried employee work from Apr 24 to June 24 working in India and Holding Salary June month and F&F paid now can I tds deduct on 195 Non resident or not? this employee from July 2024 stay & work our subsidiary company US

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