Respected Sir,
Our process to establish Manufacturing Division in India,is under process.
For this purpose we have selected one Indian Person for Planning & Development in India.
His Salary will be paid by Main Company in Korea. i.e. Salary will be remitted from Korea in Employee's Bank Account.
Please sugesst us:
1. Any Transfer Pricing Issue regrarding these transactions.
2. Any Tax Obligation (Direct- Indirect)
Best Regards.
Pradeep kaushik
Tax and Transfer Pricing Guidance for Indian Employee's Salary from Korean Company: TDS and Subsidiary Considerations An individual inquires about tax and transfer pricing implications for an Indian employee's salary paid by a Korean company. The employee is involved in planning and development for a manufacturing division in India. A respondent advises that if the company has a branch or subsidiary in India, the salary should be paid through it, with tax deducted at source (TDS). If paid directly from Korea, TDS must still be deducted. The inquirer mentions the absence of a branch or subsidiary but considers using an existing Indian subsidiary to handle salary payments and seek reimbursement from Korea. Transfer pricing issues should be carefully managed. (AI Summary)
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