Wednesday, April 15, 2009

NON-RESIDENT COs LIABLE TO DEDUCT TDS OF EXPAT STAFF DEPUTED IN INDIA, SAYS SC

There’s more tax trouble for non-resident companies and their expat employees working in India. The Supreme Court held that non-resident companies would be liable to deduct tax at source on overseas salaries paid to their expatriate employees, deputed to work in India. This would mean that foreign companies that have no establishments in India would now have to register with the Indian income tax department, obtain a TAN (or tax collection and tax deduction account number) and file returns like all resident companies

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