ASSESSEE APPOINTED BY INDIAN COMPANY
WORKING IN SHIP
RECEIVING SALARY IN DOLLAR
PLS CLARIFY HIS INCOME TAXABLE OR NOT IF HE IS RESIDENT OR NON-RESIDENT
3 Replies
CA CS Nirmal Pagaria
(Fresher)
(90 Points)
Replied 09 February 2013
Income under the head Salaries is deemed to accrue or arise at the place where the service is rendered. In your case If employee render their services in india so he will be liable irrespective of payment of salaries in dollar. if he gives services outside india then place of accural would be outside. but he is resident he will be liable for his global income including above income. In case non resident he is not liable if rendering services outside not in india, if indian branch office there & payment also there ) If payment made directly from HO of india in dollar form hi wiil be liable for tax.
sathiyaram
(CA final - chennai)
(38 Points)
Replied 12 February 2013
| Originally posted by : Nirmal Pagaria | ||
 |
Income under the head Salaries is deemed to accrue or arise at the place where the service is rendered. In your case If employee render their services in india so he will be liable irrespective of payment of salaries in dollar. if he gives services outside india then place of accural would be outside. but he is resident he will be liable for his global income including above income. In case non resident he is not liable if rendering services outside not in india, if indian branch office there & payment also there ) If payment made directly from HO of india in dollar form hi wiil be liable for tax. |
 |
service provided outside india (ship is in outside). if he is non resident whether his income taxable because of appointed by indian company
john
(LEARNER)
(549 Points)
Replied 13 February 2013
Hi sathiyaram
As you said he is non resident so his income is non taxable in India.
Residential status
The residential status of an individual for income-tax purposes depends on the physical stay of the individual
in India. Based on the period of stay in India in a given financial year, an individual may be classified as:
- Resident
- Not ordinarily resident (NOR)
- Non-resident (NR).
Tests of residence under the act
A. An individual is a resident in India if he stays in India for:
- At least 182 days during a financial year
- At least 60 days during a financial year and 365 days or more during the 4 years preceding that fiscal year.
IF He does not satisfy any of the two conditions mentioned in A above, he is not a resident.
Exceptions to the above:
- The 60-day period mentioned above will be substituted for 182 days in case of the following persons:-
- A citizen of India who leaves the country as a crew member of an Indian ship or for the purposes of employment outside India
- A Citizen of India or PIO who visits India in any previous year.
B. An individual is an NOR in India if:
- He is an NR in India in 9 of 10 financial years preceding the relevant fiscal year
- His stay in the 7 years preceding the relevant financial year is in the aggregate 729 days or less.
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