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Is withholding tax is applicable for payment received by expatriate abroad and if yes how the foreign employer can ensure compliance
Where a foreign company deploys his recruit to India and his salary is directly credited to his bank account abroad, in such situation subject to provisions of DTAA and Income tax law the foreign employer is liable to deduct TDS and deposit it with the govt. treasury in India, even though it doesn’t have any presence in India. A practical way to make compliance is that employee should pay monthly advance on his own. This arrangement is approved by courts in India.
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