There is an indian co. who sends its employees to its us subsidary for employment for 3 years. The payment is made by the Indian co. on whose payroll the employees are. The employees have to pay tax of 30% in US and as per the income tax act the employer has to deduct 30% as a tax. I know u can claim the DTAA benefit. But my question is, whether there can be a situation where i dont deduct the 30% tax from his salary as he would be left with only 40% of his income as salary although he would get the tax refund later on. My question is whether is there any way whereby i dont deduct tax at source from the salary of the employee?
1 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 17 January 2011
| Originally posted by : dhruv | ||
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There is an indian co. who sends its employees to its us subsidary for employment for 3 years. The payment is made by the Indian co. on whose payroll the employees are. The employees have to pay tax of 30% in US and as per the income tax act the employer has to deduct 30% as a tax. I know u can claim the DTAA benefit. But my question is, whether there can be a situation where i dont deduct the 30% tax from his salary as he would be left with only 40% of his income as salary although he would get the tax refund later on. My question is whether is there any way whereby i dont deduct tax at source from the salary of the employee? |
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if the salary is paid in USA then only he has to pay taxes in usa,
if salary is paid in usa then in india his salary is zero, hence no TDS
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