Salary received from foreign company, Income Tax

[N R CONSULTING N R CONSULTING]

Can a foreign company without having any office or establishment in India, maintain employees in India who will work from home on a salaried basis?

Posts / Replies

[Anuj Gupta]

If you strictly go by the intention ogf Govt. then the answer is NO. But practically, many foreign Companies are doing so ,provided the TDS u/s 192 is deducted by them.

There is also an risk of forming a PE in India and the foreign company getting taxable in India.

[N R CONSULTING N R CONSULTING]

How can the foreign Company get a TAN in India for deducting and depositing tax under section 192?

[Anuj Gupta]

Thats what I said in my earlier reply "If you strictly go by the intention of Govt. then the answer is NO".

Foreign Company needs to establish an Branch ?Liasion Office or a subsidiary for the same purpose.

 

Anuj