USA Income Tax
This query is : Resolved
10 January 2020
Hi friends, Any one from Big 4 / MNC working for USA Companies... Pls help...
Salary is due but not paid in a US company. No tax is provided for. They continue to make provisions and claim it as an expense in Income statement but no provision for Tax. Salary is not paid. This is for owners so they did not demand salary to be paid as well.
They say salary is liable to tax only when paid in USA. So if you dont pay salary then it is not taxable.
In India salary is taxable as and when it is due or paid whichever is early.
I find this ridiculous, as i believe you cannot claim the salary expense if it is not paid and it escapes withholding tax as well.
But i could not pull the line item in their tax law where it says you either have to reverse the provision or provide and pay the withholding Tax. Pls help.
Salary is due but not paid in a US company. No tax is provided for. They continue to make provisions and claim it as an expense in Income statement but no provision for Tax. Salary is not paid. This is for owners so they did not demand salary to be paid as well.
They say salary is liable to tax only when paid in USA. So if you dont pay salary then it is not taxable.
In India salary is taxable as and when it is due or paid whichever is early.
I find this ridiculous, as i believe you cannot claim the salary expense if it is not paid and it escapes withholding tax as well.
But i could not pull the line item in their tax law where it says you either have to reverse the provision or provide and pay the withholding Tax. Pls help.
CA R SEETHARAMAN
(Expert)
10 January 2020
In India also TDS on salary is deducted only it's paid, in noway it's different from US law. March salary paid in April is considered in next year taxable income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Ito add credit side of bank
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- GSTR9 Annual Return
- Employee secondment
- Applicability of tax on invoice
- Rent agreement of House of deceased person
- Gift to nri relatives resides in usa
- Form 144 TDS Return Validation error
- Rectification under processing even after 6 months cpc portal
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
