05 July 2014
MY FRIEND IS RECENTLY JOINED RELIANCE POWER HE HAS GIVEN AN ASSIGNMENT IN SOUTH AFRICA THEY WERE PAYING SALARY IN INDIAN RS 2.00 LAKH IN INDIA AND $ 150 PER DAY IN SA AND MY FRIEND WILL COME INDIA EVERY 3 MTHS FOR 15 DAYS COMPANY IS SAYING THEY WILL NOT DEDUCT TDS ON THIS INCOME AS THEY WILL MAKE HIS STATUS NRI & HIS INCOME WILL BE TAX FREE.AS I AM NOT AGREE WITH THIS IS THEIR ANY KIND OF TAX PLANING POSSIBLE & WHAT COMPANY IS SAYING IS CORRECT. THEY ON POWER PROJECT IN SA
06 July 2014
1. If he has to complete total 181 days working in SA in a year to become NRI then any foreign exchage received in SA will be non-taxable.Otherwise all foreign exchange is taxable. 2.INR received in India is fully taxable. 3. Foreign Company Indian office cannot make NRI status unless U complete 181 days outside India. 4. If Home country of the Company in SA makes NRI certificate for you even if UR not there in SA more than 181 days , then donot use this cerificate FOR NRI status certificate which is wrong as per Indian Tax law. 5. U can make tax planning by staying more in SA or else where in Foreign to complete 181 days.
12 July 2014
but in above case company is Reliance Power having Project in SA and it is not deducting tax on amount paid in india even ,how it is possible and paying daily allowance of USD 150 in SA which is also not taxable ? what kind of tax planning they did ?
CAclubindia
