Salary paid by holding company

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Anwar Shaikh (Querist)
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08 December 2012 Dear Experts,

Can holding company pay salary to employees who are on payroll of subsidiary company ?

Holding company is : Foreigner

Subsidiary Company is : Indian Resident

Employees are getting salary from Indian as well as Foreign Holding company.

Will the salary is taxable in India in Employees hand ?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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09 December 2012 Holding Company can pay salary to employees of subsidiary Company but it shall create an issue in taxation and transfer pricing of Indian company.

Also the contract of employees needs to be seen n the present case.

Yes all the salary received by Indian employees shall be taxable in their hand.

Anuj
femaquery@gmail.com

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