TDS on Salary From USA

Dear abhi,

The incidence of tds arises on the part of payee. So, the company will check in the tax laws of USA that whether tds is to be deducted or not. Further if u r receiving the salary in India, it will be taxable in ur hand and further u will get the relief of the tax deducted at source by the company as per the double tax avoidance agreement.

I think question needs more clarification as one place you are saying that company doesnt have any business connection in India and second place you are saying that it is paying salary to an Indian employee in India. Moreover Tax laws of USA and DTAA willbe applicable as company is reqistered in USA.

Mr. Abhishek,

According to me it will become the case of Liaison office as for all these expenses you need to receive funds from USA and as you said it doesnt have any income generation in India so they can set up a liaison office in India. As you must be knowing that liaison office are not allowed to perform any business activities but they are the medium of communication only.