Provisions relating to TDS

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Chinju (Querist)
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13 November 2009 Hi All,

My name Chinju and I am looking for the provisions of TDS on the following issue..

XYZ is a foreign company having an employee ABC in India. ABC is an Indian citizen, residing in India and rendering services in India.
The salary is paid in foreign currency.

-Is the employer responsible for deducting tax at source?
-How will he remit the tax amount?

-There is a branch office in India, so can that pay the TDS amount to the Govt. on behalf of the company?

Help me please.......

Thanks in advance,
Chinju

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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14 November 2009 You have used the word "on behalf of the company" means the branch do not belongs that foreign company. It may be frenchisee or C&F agent or so independently working for such company. If so, TDS law do not attracted.

If, the branch of the same company is carrying its activities in India, it has to obtain registration under all Indian Laws and held liable to deduct the TDS.

If their is no branch in India and company directly paying you the salary. Since it is the the Income raised in India for you are liable to TDS on Salary and to file IT Return if taxable limit fatched.