Pure Agent & Expat Salary
This query is : Resolved
14 January 2011
Dear Sirs,
We are a Indian Company (100% subsidiary of Foreign Company). Expats are deputed in India and work only for Indian Company. (this is supported by Deputation agreemnt which clearly mentions the expats to work as per policies, rules and regulations of Indian Company and foreign company do not have any infuence).
The Expats are paid as below:
1. Portion of Salaries and related benefits is paid abroad by Foreign Company and Debit Note is raised on Indian Company on Quarterly Basis to reimburse this amount.
2. Portion of salary is paid in India to Expat.
Here assuming the expat is working as a Pure Agent for Indian Company and reimbursements are made on actual basis to Foreign Company, this transactions are excluded from service tax payments.
Kindly Advise
We are a Indian Company (100% subsidiary of Foreign Company). Expats are deputed in India and work only for Indian Company. (this is supported by Deputation agreemnt which clearly mentions the expats to work as per policies, rules and regulations of Indian Company and foreign company do not have any infuence).
The Expats are paid as below:
1. Portion of Salaries and related benefits is paid abroad by Foreign Company and Debit Note is raised on Indian Company on Quarterly Basis to reimburse this amount.
2. Portion of salary is paid in India to Expat.
Here assuming the expat is working as a Pure Agent for Indian Company and reimbursements are made on actual basis to Foreign Company, this transactions are excluded from service tax payments.
Kindly Advise
16 January 2011
Here the question of deduction of TDS on salary so paid shall also arise.In the case of Eily Lily (SC) there was same situation and it was held that TDS on salary needs to be deducted on the salary paid in india as well as outside India.Kindly check whether the same is being followed here.
Anuj
9810106211
Anuj
9810106211
12 July 2012
Thanks for opinion. We are paying TDS on monthly basis.
Please advice us on service tax applicability for the issue. Also considering negative list, whether this transaction (salary debit notes from parent for expats who are 100% employees of an Indian Company) qualify for Service Tax?
Kindly advice for service tax
Please advice us on service tax applicability for the issue. Also considering negative list, whether this transaction (salary debit notes from parent for expats who are 100% employees of an Indian Company) qualify for Service Tax?
Kindly advice for service tax
12 July 2012
Sorry no idea for service tax.
Anuj
Anuj
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
Trending Online Classes
CAclubindia
