TDS to be deducted

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BHAVESH (Querist)
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12 July 2011 Am working with Indian company who are into Software. We have one foreigner on business visa & working for our company.Her Visa's are expiring in October & will be returning to India after 2 months break period & will be working again.Can she come on Employee visa and join us as an employee or not. If we consider her as emp den what will be tax to be deducted from her salary & will she be eligible for all the deductions as applicalble to woman assessee in India.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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13 July 2011 The answer to all the queries is YES.

TDS shall be deducted as normal employee if she stays in India for more than 182 days . Take care to deduct TDS on any salary paid outside India when she is serving indian co.

Anuj
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BHAVESH

BHAVESH (Querist)
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13 July 2011 Dear Mr.Anuj,

Thanks for your reply. But I am bit confused. Can she apply for Employment visa instead of Business visa and come to India. If we take her on the payroll of the company can she also apply for any loans. You said that TDS has to be deducted on normal rates if she stays back for more than 182 days.Sir a humbel request if you can please refer one case study of Verizon Data Service I Pvt Ltd vs CIT and explain me.
Thanks a ton in advance for all the help

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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14 July 2011 If she is working for Indian company and on payroll of Indian Company then she can certainly apply for employment VISA.

Regarding loans , it shall depend on the policies of bank granting loan.

I hope you are referring to AAR ruling of Verizon Data Service I Pvt Ltd , wherein the payment made to the foreign Company for reimbursement of salary was treated as FTS and held chargeable to tax in India. Personally I don't agree with the contention of AAR in that ruling, simply because one income cannot be taxed twice in India.

Anuj
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