Assessee employed by Indian entity but sent on long-term ...

Salaried employee deputed abroad, income taxed in work country as per DTAA. AO to verify foreign taxes paid.

Case Laws     Income Tax

July 18, 2024

Assessee employed by Indian entity but sent on long-term international assignment to Singapore. Salary received in India for administrative reasons, but employment exercised in Singapore. Assessee non-resident in India, resident of Singapore evidenced by Tax Residency certificates. Income offered to tax in Singapore, taxes paid thereon, no credit of Tax paid in India taken in Singapore. Assessee entitled to benefit of Article 15 of relevant DTAA, salary taxable in country where employment exercised. AO to verify income offered to tax in Singapore, taxes paid, no credit of Taxes paid in India taken by assessee in Singapore. As per Sec. 15(a), regular salary chargeable to tax. Sec. 9(1)(ii), salary income deemed to accrue or arise in India if earned in India for services rendered in India. Treaty benefit applicable to persons residents of both India and treaty partner country. Salary earned for work performed in treaty partner country taxable there.

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