TaxTMI 
TaxTMI 
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?
Salary received from foreign company
26 Jun 2012 
3 Replies 
5716 Views Asked by
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. (AI Summary)
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. (AI Summary)