Tds on salary of foreign national

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2017 Dear experts, one of my client propose to employ one technical person from Japan, he will in employment for 2 to 3 years, and will be paid salary in Indian currency, now I wants to know whether TDS provisions on the payment of salary to him will apply or not?

If yes, he is not having the PAN, to get the same he is a resident of JAPAN, is it possible to get the PAN?

Then at what rate the TDS to be deducted from the salary?
please clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 November 2017 TDS provisions on salary payment will be applicable. It's possible to get PAN for non resident.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 November 2017 Full tax payable has to be deducted as TDS u/s 192.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2017 Is there any agreement for avoidance of double taxation treaty

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 November 2017 Yes
http://www.incometaxindia.gov.in/dtaa/comprehensive%20agreements/108690000000000039.htm

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2017 So in such a case will there any relief to the person who is getting the salary?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 November 2017 Yes relief in other country will be available.

Aditya Agrawal

Aditya Agrawal (Querist)
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12 November 2017 TDS has to be deducted but u/s 195 ( if the techincal expert is a non resident) PAN can be obtained and the “Double Taxation Avoidance Agreement” between Indian Govt and the Govt of the experts country will allow for relief of tax. Even if does not, it is your liability to deduct TDS else IT Department will catch hold of you. Hope this helps ....

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