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TDS additional pay abroad assignments

This query is : Resolved 

11 October 2008 Dear all,

Some of the employees of our company are working in Nigeria on one assignment. They are getting an additional pay for this. Do I have to deduct TDS on the additional pay that we are paying for working abroad?

11 October 2008 Yes ,its taxable .Exemption u/s 10(7) is only applicable in case of govt employees

13 October 2008 Thank you very much sir.


14 October 2008 Please check up the residential status of the employees and the location of the earning source.
For example, if you depute your employees to your subsidiary in Nigeria and the additional pay is related to the work there and paid by the Nigerian subsidiary and the employees' status there is NRI, the case could be different.

15 October 2008 Thanks sir, we are a consulting firm for MFIs. And these employees are working at the client place now(Nigeria).



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