We are a software company. Due to business needs we need to hire two to three people in Singapore, who will be working from home in Singapore and as well as will visit client onsite. Without setting up an office in Singapore how can we pay them from India, prefereably from India Payroll.
What could be implications from Income Tax, FEMA and other related laws...
Regards
Sukanta
Hi Sukanta,
You can keep them on your pay roll and treat them as Expats.
In case of a Indian expatriate working in foreign, the remuneration received by him, assessable under the head 'Salaries', is deemed to be earned in that particular country where he is working if it is payable to him for services rendered in Singapore as per that country income tax law.
The explanation to the aforesaid law clarifies that income in the nature of salaries - payable for services rendered in Singapore shall be regarded as income earned in Singapore.
Their TDS liability will be in Singapore as they are earning in Singapore.
Please refer India-Singapore Treaty for more details.
Please correct me if I am wrong.
Pradeep Jain
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