<h1>Supreme Court: Foreign Companies Must Deduct Tax at Source on Expat Salaries per Section 9(1)(ii) of Income-tax Act.</h1> The Supreme Court ruled that a foreign company must deduct tax at source on salaries paid to expatriates working in India, even if part of their salary is paid abroad. The case involved a joint venture where expatriates received a portion of their salary in India and the rest abroad. The Court held that tax deduction at source (TDS) provisions apply if the income is chargeable under Indian tax laws, specifically under Section 9(1)(ii) of the Income-tax Act. The ruling requires tax authorities to verify if taxes were paid on salaries received abroad and to recover any shortfalls, while dismissing penalty proceedings due to the issue's complexity.