TaxTMI 
TaxTMI 
A RNOR receives salary from a foreign company not having any setup in India.He is the only employee in India working from his home in Delhi.He gets the salary credited to his bank account ever month.The employee wants to have the breakup of salary in such a manner that he gets the maximum benefit out of it.Is it necessary that the company issues Form 16 & Is it possible for a foreign company to take a PAN & TAN no?& What is the procedure for the same?
Salary from a foreign Comapny
13 Sep 2010 
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Taxability of salary in India: salary paid for services in India may require withholding unless recast as consultancy fees.
Remuneration paid by a foreign company for services rendered in India is taxable as income arising in India; if designated as salary, the payer may be required to obtain TAN, deduct tax at source and file TDS returns. Alternatively, recasting payments as consultancy/professional fees allows the recipient to treat them as business income and may remove the payer's obligation to withhold tax, subject to relevant tax administration guidance. (AI Summary)
Remuneration paid by a foreign company for services rendered in India is taxable as income arising in India; if designated as salary, the payer may be required to obtain TAN, deduct tax at source and file TDS returns. Alternatively, recasting payments as consultancy/professional fees allows the recipient to treat them as business income and may remove the payer's obligation to withhold tax, subject to relevant tax administration guidance. (AI Summary)