Samy (Manager) 04 September 2014
Hi All
The situation is an Indian national is employed by a singapore based company to develop its market in India. Essentially this guy would be working in India but would be on Singapore payroll. Will indian government have any issues if he is paying his taxes in Singapore.
What is the best way to get Salary credited to the account every month, with minimum loss in transaction and taxation.
Thanks in advance
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 08 September 2014
The Double Tax Avoidance Agreements (DTAA) is essentially bilateral agreements entered into between two countries India and Singapore. Consult respective embossy offices in this regard.
PRAKRITI (TAX EXECUTIVE) 11 September 2014
Dear Samy,
A person who is resident in India (his stay in India for more than 182 days in a financial year) is chargeable to tax for his global income. Further, as per section 9 of the Indian Income Tax Act, any salary income which is earned in India for services rendered in India would be taxable in India. However, from the understanding of your query, the singapore company is deducting tax as per the provisions of that country. In such a situation, you may file a return of Income in India, stating the Income earned in Singapore and claim the credit of tax deducted in Singapore under section 90 of the Act. you may have to pay the balance tax if Indian taxes are more than Singapore taxes.
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