17 January 2012
Mr. XYZ is a Foreign Citizen who comes to India for a Project. He has been in India for more than 182 days during F.Y 2011-12. He receives $ 7000 per month as Professional Fees for the Project Work done in India, his Professional Fees are directly credited in to his Bank A/c which is in U.S.A. He does not have any Bank A/c in India. He incurs all his expenses like Travelling, Mobile etc. through his credit card. 1) What is the Tax Treatment in case of the above scenario? 2) If the Income is taxable, then can the Expenses incurred be claimed against the Professional Income?
20 February 2012
There is no need for case law when the charging section is clear. Here the foreigner may also need to charge and deposit service tax for the services rendered in India.
The Indian party needs to deduct TDS @ 20% in case the foreigner doesn't have PAN.
CAclubindia
