One of my client commpany ABC Private Limited has two directors. One is an Indian Director and another one is Chinees Direcor. ABC Private Limited has got a contract work in China. Chinees Director is looking after the contract work in China. ABC Private Limited is paying him a salary of Rs. 100000.00 per month. My query is whether, ABC Private Limited is required to deduct TDS from the salary...? If yes, at what rate....??
Please consider following points also:
1. Chinees Director has no PE in India
2. Chinees Director has bank account in India. We have either option to pay salary in Indian bank account as well as in China Bank Account
3. Does salary is deemed to be income deemed to accrue and arise in India.
CAclubindia
