Income tax liability for employee employed in srilanka

Nitin Ji, your quesion. is not clear to me. what is meant by "We" the employer or the employee.Both are the tax payrts in th eyes of law. However, I understand your question is regarding the tax to be paid by or on behalf of the employee.

The answer can as follows:

If your employee comes to stay in India for total 182 days or more in a previous year he has to pay taxin India. On the other hand if you do not want to pay tax in India bur instead in Sri Lanka, than you have to keep watch that he/she does not come to stay in India for 182 days or more in India.Option is yours.

Currency: it does not matter. (Please refer S. 6 pertaining to Residential Status of an Assesseee.)

 taxed only on their Sri Lankan-sourced income.A resident is a person who is physically present in Sri Lanka for 183 days or more during a year of assessment.