TDS

This query is : Resolved

CA.GAURAV SACHWANI (Querist)
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23 October 2009 if a person has work visa permit of india and he is working in indian company whose head office at france and payment of salary is made through france then we have to deduct tds or not

HARI K V

HARI K V (Expert)
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23 October 2009 As he is working in India, his Income is deemed to accrue or arise in India. Hence tax is to be deducted.
But, the consequences of non deduction prima facie will not have any affect on the p&l of the Indian Co.
Only when the issue is known to assessing Officer, the TDS amount may have to be bourne by the Indian Co.
Hence, non-deduction will not attract any penalty.