Double payment of salary to indian employees
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 May 2018
Parent company in Germany had made payment of salaries of Indian employees of Indian subsidiary by mistake.Also Indian subsidiary has rightly paid the salaries.
1. What are the consequences/ violations in this case and remedy available ?.
2. can this be adjusted against next month salary of employees and indian subsidiary can reimburse the same to parent co.
3. will there be any fema violation ?
4. will it attract gst under rcm basis under manpower supply services to be borne by indian subsidiary, as dept has issued SCN in past based on similar transactions.
pl guide.
1. What are the consequences/ violations in this case and remedy available ?.
2. can this be adjusted against next month salary of employees and indian subsidiary can reimburse the same to parent co.
3. will there be any fema violation ?
4. will it attract gst under rcm basis under manpower supply services to be borne by indian subsidiary, as dept has issued SCN in past based on similar transactions.
pl guide.
23 May 2018
* can this be adjusted against next month salary of employees--- yes
* Indian subsidiary can reimburse the same to parent co. - This can be answered after knowing the mode and route of payment made by the Parent Company - normally the answer is yes as a refund of advance received
* will there be any fema violation ? -- No, if the payment was made by parent company through banking Channels the
* will it attract gst under rcm basis under manpower supply services to be borne by Indian subsidiary, as dept has issued SCN in past based on similar transactions -- the answer can be provided only after going through the SCN
Read more at: https://www.caclubindia.com/experts/experts_display_list_unresolved.asp?offset=2&mode=open
* Indian subsidiary can reimburse the same to parent co. - This can be answered after knowing the mode and route of payment made by the Parent Company - normally the answer is yes as a refund of advance received
* will there be any fema violation ? -- No, if the payment was made by parent company through banking Channels the
* will it attract gst under rcm basis under manpower supply services to be borne by Indian subsidiary, as dept has issued SCN in past based on similar transactions -- the answer can be provided only after going through the SCN
Read more at: https://www.caclubindia.com/experts/experts_display_list_unresolved.asp?offset=2&mode=open
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 May 2018
Thanks Mr. Jain
1.Also, TDS is not deducted in this case on employee salaries. what is the remedy, should we deduct in next month ?
2 These Indian employees were consultants to German parent co. from oct 17 to mar 18 and their employment agreements started with indian subsidiary from 1st apr 2018.
3.Do we need to inform AD/ RBI about the transaction volunarily. and take their approval ?
1.Also, TDS is not deducted in this case on employee salaries. what is the remedy, should we deduct in next month ?
2 These Indian employees were consultants to German parent co. from oct 17 to mar 18 and their employment agreements started with indian subsidiary from 1st apr 2018.
3.Do we need to inform AD/ RBI about the transaction volunarily. and take their approval ?
24 May 2018
1.Also, TDS is not deducted in this case on employee salaries. what is the remedy, should we deduct in next month ?--- yes TDS should be deducted now
2 These Indian employees were consultants to German parent co. from oct 17 to mar 18 and their employment agreements started with indian subsidiary from 1st apr 2018.3.Do we need to inform AD/ RBI about the transaction volunarily. and take their approval ?---- for employing a person in India and making payment in Indian currency does not require any permission from RBI
2 These Indian employees were consultants to German parent co. from oct 17 to mar 18 and their employment agreements started with indian subsidiary from 1st apr 2018.3.Do we need to inform AD/ RBI about the transaction volunarily. and take their approval ?---- for employing a person in India and making payment in Indian currency does not require any permission from RBI
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?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
