19 February 2014
An assessee is resident in India as well as in Australia as per respective countries' financial years. He has stayed in australia for more than 183 days in their financial year july-june. He earned salary in Australia. Tax has been paid and return has been filed in Australia as resident.
As per DTAA he is resident in India on the the basis of rule of his personal and economic relation. However I am confused with the interpretation of Article 15(2) of DTAA where it states that 'income may be taxed in the other state if the employment is exercised.'
Kindly guide me whether his salary is exempt in India.
21 February 2014
Salary income of assessee (a non-resident), working on vessel plying on international routes, not taxable in India; Assessee's salary income accrued outside India where he rendered services, place of receipt of appointment letter not relevant; Salary income not received in India, as assessee had lawful right to receive salary outside India, & cheques were merely deposited subsequently in Indian bank account; Salary amount was at assessee's disposal outside India and in exercise of his disposal right, it was transferred to India; Rejects Revenue's stand that by virtue of assessee offering his pension and interest income (both received in India) to Indian tax, assessee accepted his status as 'resident':Agra ITAT Arvind Singh Chauhan [TS-80-ITAT-2014(AGR)]
22 February 2014
In my case, there is duel residency in India as well as in Australia. Can we take the benefit of DTAA and claim the same that salary is taxable where employment is exercised. Is there any case law on the same?
CAclubindia
