Salary taxability of branch office

This query is : Open

Deepak Khanna (Querist)
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15 November 2011 An indian pvt limited has a branch office in London. Employees working there are Britishers and not indians . Would TDS liability arise in India ie would the company need to deduct tax in India and deposit in India if yes how would those employees claim TDS credit

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 November 2011 Salary paid in other countries to other country nationals will not attract Indian income tax, need to be taxed as per the particular nation taxation

Deepak Khanna

Deepak Khanna (Querist)
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15 November 2011 Thanks Mr Krishnan

but how the effect needs to be shown in our TDS returns as branch office expenses will be consolidated in HO books there would be mismatch between the gross amount of salary booked and TDS deposited because HO books will only record TDS which is deposietd on Indian employees

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