Can consultancy fees for project in Sikkim be sent to a/c in Phillipines?
K.K.Ganguly
(Querist) 07 May 2011
This query is : Resolved
My brother who is a USA citizen but stays in Phillipines has got a conract to work in a hydroelectric project in Sikkim as consultant run by a Public Limited Company. As per he Agreement the employer will pay the income taxes. His reimbursement/ fee is to be paid into an account nominated by him off shore to Philippines.All Indian Taxes and costs are to be paid by the employer and tax receipt for tax paid issued at time of payment of consultancy fee.
Would the learned experts kindly answer the following.
1) Shall he be required to open I.T.File, obtain PAN Card & file return?
2) What are the requirements and protocols to transfer funds to account in Philippines
3) Can he nominate payment to account in his wifes name at Phillipines?He will be in India on working visa.
I will be thankfull if the experts kindly give their opinion at the earliest.
Devajyoti Barman
(Expert) 07 May 2011
1. Foreign citizen does not require to file income tax not PAN is permissible in India.
2,3 He can open an account in Philippines ether individually or jointly with his wife where the salary may be credited.
M V Gupta
(Expert) 08 May 2011
I agree with the views expressed by Mr. Burman. The employer of the foreign consultant would deduct tax at suirce at the full rate applicable under the tax laws and issue the requisite TDS certificate to the Authorised dealer, i.e., the bank which would in turn remnit the salary abroad to the credit of the foreign consultant's account.
