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Tds query

attika (Article assistant) (179 Points)

10 February 2015

If an employee of Indian co. is transferred to its subsidiary foreign co.and if that employee is getting salary partly from Indian co. and Partly from foreign co. How TDS is required to be deducted?

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7 Replies

Abhishek Singh (Chartered Accountant) (155 Points)
Replied 10 February 2015

The salary income of the person earning in India is liable to Tax as per the provision of Income tax and the Tds is deducted per month accordingly. Whereas the salary earning from foreign company is as per DTAA agreement with that country.

Sriram (CMA Final) (178 Points)
Replied 10 February 2015

Agreed with Mr. Abhishek Singh

attika (Article assistant) (179 Points)
Replied 10 February 2015

But first for calculating TDS we should consider both incomes and thereafter we consider dtaa provision...

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 10 February 2015

Yes Ms. Naina For Tds purpose u will have to considered both Indian as well as foreign. Not only these other incomes, other incomes too that had been declare at the time signing the employment agreement.

attika (Article assistant) (179 Points)
Replied 10 February 2015

Ok....Thanks a lot.

Roshan Thomas (C.E.O ) (356 Points)
Replied 10 February 2015

In my opinion we have to see where the service of the employee is rendered. If the service is rendered outside india then it is not taxable and tds is not attracted even if paid from india. Place of providing the servuce is relevant Exception is indian citizen working abroad as employee of govt of india. Then it is always raxable