Revised salary for non resident

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Raj Selvamani (Querist)
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24 November 2015 Dear Expert.

Kindly advice the following case.

"A" Company(subsidiary Company) in India paid salary to non resident as employee ( Employer & Employee Relationship). Such Employee getting part of his salary from parent company(Holding company) in out of country as per policy of holding company.

Now my question. If whole salary of employee to be paid by domestic company. impact in taxation point of view and legal.

will expect your valuable advice.

Thanks & Regards
S.Raj

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 November 2015 It is immaterial who pays the salary for taxation purpose. It is residential status and salary earned for where service is rendered.
Here he is non resident and if the salary is paid for services rendered out side India no part of his salary is taxable in India.