REPORT- TAX QUESTION ANSWERED ONLINE
IamSMEofIndia releases an Important Publication on:
"Taxability of employees of Indian Companies posted abroad and How companies should account for their Salaries/ Remuneration"
India is Growing and so are Indian SMEs. Today, we see SMEs with turnovers of 20 Cr to 500 Cr, multi-locational, diversifying, expanding globally, acquiring businesses abroad, setting up offices in Singapore, Thailand, China, France, Germany, US, Hong Kong, Australia, South Africa, Middle East... everywhere!
We post our employees outside India for short or long term for various roles: Projects Supervision and Delivery, Procurement, Sourcing, Supplies, Purchase and Quality Management, Representatives from India to control the Indian interests or when Simply going as a Salaried employee yourself.
But Income tax provisions, rules, calculation, applicability of TDS on Salaries paid to such employees change in such situations, specially if the person goes outside on Work Visa/ Permit and/ or is stationed there fore more than 180 days.
New Questions arise:
* What are those changes?
* How to decide applicability of TDS?
* Whether employee would have any tax liability innocently where posted?
* How to avoid double taxation?
* What is the significance of the Concept of PE : Permanent Establishment?
The understanding of these issues and answers to above are important for employees as well as employers.
Each case may be different depending upon number of days, role and responsibility, VISA Category, Any Treaty between India and that country, or other factors.
Taxation, Accounting & Compliances Advisory Cell of IamSMEofIndia has compiled a detailed Circular and reference sheet, with check lists, do's and dont's, important highlights covering basics to sample cases related to this.
We acknowledge the contribution of Mr. Sangeet Gupta, CA, and Counsel IamSMEofIndia in writing the document for benefit of our members.
IamSMEofIndia and FSIA Members can ask for FREE COPY by writing to:
Download the IamSMEofIndia Mobile App on your Android Phone and send request.
Entrepreneurs Facilitation Cell- I am SME of India
email@example.com ; 9711101666 ; 9711123111