We have a branch in USA and we have a staff in the USA branch. we are paying his salary from India office. Now what is the tax needs to be deducted from his payment? What is the tax rebate to him while filing a return in the USA.
08 June 2009
tds need to be deducted and as per dtaa, tax relief will be available but make sure that not a single day default will occur on tds payment otherwise exp will be disallowed forever u/s 40(a)(iii).