Resident Indian on Deputation in India

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2011 Hello,

I work for a company in UK for last three years. About an year back my company sent me to India on long term deputation to suppliers place. I am getting paid in UK and TAX and NI are deducted at source in UK. As per my company sources India has a DTAA and I don't have to pay tax again in India. I have consulted couple of CAs here in India and they suggested the same. Now my company want me to continue here for another year. I am not paying any tax here in India. how long can I work in this mode?. Is it true that if I pay tax in UK I don't have to pay again in India?.

Any help would be greatly appreciated.

Thanks,
Avbrao

Jainish shah

Jainish shah (Expert)
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15 March 2011 Hello sir,

1st question I want to ask,are you of Indian origin?
2ndly, if you satisfy all the condition prescribed to have ordinary residential status then and then only you will have to think about tax in India. Otherwise not.

In summary, if you stay in India not more than 730 days during 7 years immediately preceding the previous year and at least 2 years out of last 10 years you have been a person as ordinary Indian Resident.

So first you have to decide your residential status in India. Then if you prove to be ordinary indian resident, then and then onlt you have to think about tax in India. otherwise you are not taxable.

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2011 Hi, Thanks for your response.

Yes! I am from Indian Origin. Upto Feb 2008 I am India working for various Firms. I have travelled to UK on Tier 1 Visa and joined a UK company. Since Jan 2010 I am back in India on Deputation for the same company. They wanted me to go back to the role in UK after the deputation period.

Thanks,
Avbrao

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