Whether for a non-ordinary resident who is rendering services in India but receiving salary from his US company in US dollars is taxable in India..reply me as fast as possible plz..
Thanx
10 Replies
Sonam Bidasaria
(CA)
(770 Points)
Replied 15 March 2012
Yes.it will taxable as income accrue or deemed to accrue outside India will be taxable in the hands of Resident and Non-Ordinary Resident of India.
pinky
(student)
(214 Points)
Replied 15 March 2012
but his company and the control and setup of the company is in US..his salary vl b paid by them to his forign account nly...does this effects his taxability??
Regit
(CA.Final)
(320 Points)
Replied 15 March 2012
Look. For the income to be taxable, it should be accrued or deemed to be accrued/arised in India. Here he is rendering services in India. Which means that his company is likely to get Income from India for the services rendered by its employees.
Here the Income is accrued to the company but not to the employee. Therefore the Salary received by him is not taxable in India.
pinky
(student)
(214 Points)
Replied 15 March 2012
under sec 9(1)(ii):Income which falls under the head salaries would be deemed to accrue or arise in India, if it is in respect of services rendered in India.
as per the abv section, his income is deemed to accrue in INdia..den wht abt dis statement?
pinky
(student)
(214 Points)
Replied 15 March 2012
as per the abv section, client salary income is accrued or arised in India as his services rendered in India, hence as per the taX liability of a non ordinary resident, his income vl b taxable in India..?
Is this xplanation correct r any other issues?
pinky
(student)
(214 Points)
Replied 15 March 2012
can any 1 provide me supreme case law regarding dis taxability of not ordinary resident...
manoj lavu palambe
(article assistance)
(39 Points)
Replied 15 March 2012
see there is TWO type of income indian income & Forgein income,an income accrued or arise in india is indian income which is taxable for all i'e R&OR, R but not OR and for NR in ur question it is indian income which is taxable
manoj lavu palambe
(article assistance)
(39 Points)
Replied 15 March 2012
if ur confused then decide first whether the income is indian or forgein..............if indian taxable for all,if forgein then taxable for R&OR and .............................R but not OR(if its connection with india)
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