30 November 2012
Hi pls clarify the taxability of salary in the situation:-
" Mr. A worked in a UK company upto 31st Oct 2012. He came to India on 1st Nov 2012 and Joined in an associate enterprises of UK company. The salary for the month of Oct 2012 paid by the Indian Company (AE of UK Company)in India ( Mr. A salary received in India )and that amount will be reimbursed by UK company to Indian company."
Whether the salary for the month of Oct 2012 is taxable in India under the following situation I)Mr. A Resident in India II)Mr. A Not ordinarily in India III)Mr. A Non resident in India
01 December 2012
Only for a Resident Indian the world wide Income is taxable.
So in the present case salary for the month of October 2012 can be taxed in case of a person resident in India.
However the Income Tax Department can try to tax the October 2012 salary on receipt basis under section 5(2)(a)of Indian Income Tax Act,1961, for RNOR and NR also.
But there are enough case laws based on which there are chances to refute the stand of Income Tax Department.
01 December 2012
Hi Sir Thanks for immediate replay of my query. Further i need a clarification regarding the DTAA applicabiliy of UK & India as per Article 16 of DTAA under dependent personal services. whether any relief if there under this or any clauses of the DTAA for the the above three categories i.e. ROR, RNOR, NR. kindly expecting your valuable opinion on the same as early as possible.
CAclubindia
