Salary received from foreign company

[N R CONSULTING N R CONSULTING]

Can a foreign company without having any office or establishment in India, maintain employees in India who will work from home on a salaried basis?

[Anuj Gupta]

If you strictly go by the intention ogf Govt. then the answer is NO. But practically, many foreign Companies are doing so ,provided the TDS u/s 192 is deducted by them.

There is also an risk of forming a PE in India and the foreign company getting taxable in India.

[N R CONSULTING N R CONSULTING]

How can the foreign Company get a TAN in India for deducting and depositing tax under section 192?

[Anuj Gupta]

Thats what I said in my earlier reply "If you strictly go by the intention of Govt. then the answer is NO".

Foreign Company needs to establish an Branch ?Liasion Office or a subsidiary for the same purpose.

 

Anuj

AI Summary

TDS obligation requires foreign employers to deduct tax on salaries of India-based employees to avoid tax exposure. A foreign company employing India-based salaried workers must comply with Tax Deduction at Source (TDS) obligations on salary, secure appropriate tax registration (TAN) or equivalent means to remit withheld tax, and faces the risk that such local employees may create a Permanent Establishment leading to Indian taxability; establishing a branch, liaison office, or subsidiary is advised to regularise these obligations.