A Indian Company registered in India employs a US national and US resident - Mr. A for carrying out Research work. Mr. A is not required to visit india.
Whether the Indian Comapny is liable to deduct TDS on salary paid to Mr. A? As per DTAA provision will the company not be required to deduct any tax i.e. TDS?
PLs mail me ur opinion on my email id goyalsweetdream@gmail.com
21 January 2011
No, as per sec. 5 of Income tax Act the income does not accrue or arise in India and also the same is not deemed to accrue or arise in India as per sec. 9 therefore the requirement of TDS is not there.