TDS On Salary

[Manish Sulakshane]

Dear Sir,

Q. 1 One of our Director is a NRI. For payment of his salary overseas in USD, due we require to submit form 15CA & 15CB to the banker???

Q. 2 We have a person appointed overseas looking after the activities of our company in the Europe who is based in UK. His monthly remuneration is 2500GBP. He being an NRI has an PAN Card. Kindly advise whether we should deduct TDS @15% as per the Bilateral agreement between the two countries or how we should proceed??

[DR.MARIAPPAN GOVINDARAJAN]

In my view

1. You should submit the said forms.

2. Yes. you have to deduct tax as per the bilateral agreement.

3. to proceed please consult an expert.

AI Summary

TDS on salary: submit forms 15CA/15CB for overseas remittances and apply applicable tax treaty withholding.
For cross-border salary payments to a non-resident director or overseas employee, submit Form 15CA and Form 15CB with the banker and deduct tax on the remuneration in accordance with the applicable bilateral tax treaty; seek specialist tax advice to confirm withholding, treaty application and reporting requirements.