Tds on salary payment to a non resident working abroad for

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SAJI (Querist)
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18 June 2014 MY COMPANY APPOINTED A NON RESIDENT (NEPAL CITIZEN) AS ITS EMPLOYEE (MARKETING EXECUTIVE) IN NEPAL AND AGREED TO PAY SALARY IN FOREIGN COUNTRY IS IT SUBJECT TO DEDUCTION OF TDS ?

PLS ADVISE WHAT ARE THE TECHNICAL THINGS TO BE TAKEN CARE?

THANKS IN ADVANCE.

sudarshan

sudarshan (Expert)
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18 June 2014 tds not applicable as work not done in india and he is NR

SAJI

SAJI (Querist)
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18 June 2014 Thanks Sudarshan.

But we do not have any office in Nepal and payment is going from India only. Whether this will make any difference?

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Rupesh Jain

Rupesh Jain (Expert)
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18 June 2014 you have to deduct the tds u/s 195 @ 10%
if he have indian PAN otherwise @ 20%

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sudarshan

sudarshan (Expert)
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18 June 2014 unless you establish office in nepal, you cannot pay salary. it will be consultancy fee only

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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17 January 2015 Dear Rupesh Ji

Section 195 is not applicable on payment of salary. Please read section 195 clearly from link given below:

http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102120000000037260&k=&IsDlg=0