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International taxation

neeraj gupta (CA FInal) (61 Points)

19 February 2012

my client employed by Australian company and appointment is for india and getting salary from aust. in account opened in india directly.

client is RORI :

suggess how and where the above income is taxable.

it's very urgent and important

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1 Replies

nimish solanki (IPCC CLEARED) (108 Points)
Replied 19 February 2012

As client is ROR global income is taxable in India as per IT act.\

Moreover India - Australlia DTAA clause 15 says

Notwithstanding the provisions of paragraph (1), remuneration derived by an individual who is a resident of one of the Contracting States in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if :

(a) the recipient is present in that other State for a period or periods not exceeding in the aggregate 183 days in a year of income of that other State;

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of that other State; and

(c) the remuneration is not deductible in determining taxable profits of a permanent establishment or a fixed base which the employer has in that other State.

As you have mentioned that he is Resident so 2nd condition is violated .

So no doubt it will be taxed in India