Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARDS :: VAT Audit :: VAT RATES :: TDS :: form 3cd :: due date for vat payment :: empanelment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
 
 
« News Headlines »
 Last date to submit third installment of advance tax is December 15
 5 tax-saving funds that have given stellar returns in the past 5 years
 Find out which ITR Form is suitable for you
  Pr CIT vs. Baisetty Revathi (Andhra Pradesh High Court)
 What is income tax?
 Refund procedure initiated under GST
 Income tax returns (ITR) filing: How to get capital gains tax benefits on assets in own name
 7 avenues to help you save tax under Section 80C of Income Tax Act
 How to make income tax law less taxing
 Your Income Tax returns (ITR) filing revised? 5 points you must worry about
 Revised income tax returns under I-T radar

IT pros can't avoid tax on foreign earnings
October, 05th 2007
In a ruling which could affect tax payments of thousands of employees of Indian IT companies earning mega bucks on overseas assignments, the Authority of Advance Rulings (AAR) has said that that there was no escape from paying tax on the amount earned during a stint with the employers foreign affiliates.

If there was a deputation, income tax had to be paid either in India, if it had not already been paid abroad, and even a tax treaty would not rescue IT professionals.

The ruling is relevant for the determination of the income of non-resident employees sent on deputation abroad, as it specifies that it may not only be in India but also other contracting state which may have the right to tax same income, depending on the provisions contained in the treaty. In a cross-border world with a growing trend of mobile executives, this ruling could have a significant impact, legal and tax consulting firm Nishith Desai & Associates said.

Income tax department officials , buoyed by the ruling, said this could form the basis for dealing with a host of similar cases. The logic, they said, was simple. If the company is subject to Indian tax laws, the employee will have to pay taxes in India even if the income was earned overseas and the manager had claimed NRI status by virtue of having spent the stipulated number of days outside the country.

In the case between the tax department and S Mohan, an Infosys employee who went to Norway on deputation, Mohan claimed NRI status for tax purposes saying he spent over 183 days outside the country during 2005-06. Though he paid income tax on the salary he received in India, Mohan sought an AAR ruling on the deputation amount he earned since he believed he did not have to pay taxes on it.

The clause relating to dependent personal services (DPS) in the India-Norway tax treaty specified that the remuneration earned by DPS provider would be taxable in the state of residence (India). When the service was provided in another contracting state the other state could also tax it.

The clause relating to elimination of double taxation provided that where the income earned by an Indian resident was taxed in Norway, the government will have to deduct tax paid in the European country from the tax paid in India.

In this case the applicant failed to provide any proof that he was taxed in Norway or that he had paid tax to Norway, and it was held that the applicant was liable to pay tax in India and he was not eligible to get any relief under the treaty, it said.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions