TaxTMI 
TaxTMI 
whether there is reverse service tax liability, if company pays salary ₹ 175000 P.M . to employee resident in canada.
salary paid to non resident employee in canada
16 Aug 2016 
7 Replies 
1338 Views Asked by
Employment relationship may exclude reverse service tax liability for salary paid to non-resident employees, contested by import-of-service view.
Whether salary paid to a non-resident employee attracts reverse charge service tax is disputed: one view treats such salary as an import of service subject to reverse charge, while the opposing view relies on the statutory exclusion for an employer-employee relationship to argue the payment is not a taxable service; documentary evidence like an appointment letter or salary slips is cited as proof of employment to support the exclusion. (AI Summary)
Whether salary paid to a non-resident employee attracts reverse charge service tax is disputed: one view treats such salary as an import of service subject to reverse charge, while the opposing view relies on the statutory exclusion for an employer-employee relationship to argue the payment is not a taxable service; documentary evidence like an appointment letter or salary slips is cited as proof of employment to support the exclusion. (AI Summary)