salary paid to non resident employee in canada

[satbir singhwahi]

whether there is reverse service tax liability, if company pays salary ₹ 175000 P.M . to employee resident in canada.

AI Summary

Debate on service tax liability for salaries to non-resident employees in Canada, focusing on employer-employee exemption under exclusion clause. A discussion regarding the service tax liability on salary paid to a non-resident employee in Canada. One participant argues that the salary is considered payment for services rendered, thus subject to service tax as an import of service. Another participant counters that the employer-employee relationship exempts it from service tax under the exclusion clause. They suggest that documents like an appointment letter or salary slip can demonstrate this relationship, negating the reverse charge incidence. The discussion concludes with agreement on the importance of documentation to establish the employer-employee relationship.