Request help.. we are a software company in India. We are looking to hire a US citizen & resident to work for us from the US itself... he will be on the Indian company's payroll and we have been told that we can pay him his entire salary, with no deductions, and require him to pay his taxes in the US, per their prevailing IT rules.
Is this accurate? Can someone guide me towards some material that will help me with this?
Thanks
Sonia
It is not possible... you have to deduct tax under section 192 if on payroll else under secion 195
TDS is not required to done on salary payments if the person remains in US for the whole year, however take care of PF requirements in India or US(if any).
Anuj
femaquery @ gmail.com
O P Bagla & Co LLP
New Delhi
CA Inter
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