Tds on salary paid to foreign national

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 May 2015 IF INDIAN COMPANY EMPLOYS FOREIGN NATIONAL AS ITS EMPLOYEE AND SUCH EMPLOYEE ARE WORKING IN FOREIGN COUNTRY AND PAYMENTS ARE MADE FROM INDIA IN FOREIGN CURRENCY.
WHETHER TDS APPLICABLE ON SUCH PAYMENT AND UNDER WHICH SECTION.
THANKS IN ADVANCE FOR YOUR QUICK REPLY.

21 May 2015 TDS applicable when the the payment is taxable in India. Here in this case the foreign national is a non resident working in foreign country, the income earned by him outside India is not taxable in India. So no TDS applicable.
TDS applicable if the person rendered service in India.

23 January 2018 Sir, Any income which is earned in India is taxable ir-respective of the assessee being an Indian citizen or foreign citizen. Hence, the salary paid to foreign national is taxable and is subject to TDS.


23 January 2018 Only payment is made from India. Service rendered by foreign national out side India. He earned income out side India.
If service rendered by foreign national in India then TDS applicable.



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