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I am a citizen of Singapore of Indian orgin. I have been working for a multinational in Singapore which has registered office in India too. For the last fiscal ( Apr 2011 to March 2012), I had spent more than 182 days in India on account of official work. I however earn my salary in SIngapore. My oirganization agreed to pay - through a written memorandum and emails - any tax araising in India while I will bear the tax in Singapore. I have a few questions:

  1. Undoubtedly we need to pay tax in India for salary earned in Singapore. Who is accountable to ensure this tax is paid? I ask this because while I have been following up with my company for the last 6 months, they still have not paid the tax. I now have a new job outside this current company which I would like to undertake. But since the tax portion is going to significant , I am unsure of what to do. If the organization is accountable, I can take up the new job. If not, I will have to forfiet the opportunity.

  2. Would I need a F16 to file my returns or any other document to file my return. Is my company obligated to give such a document

regards

ram

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Note that if you have paid tax to Singapore govt you can offset that against the tax payable to India, due to a double taxation avoidance agreement between the two countries. –  Deepak Shenoy Jun 7 '12 at 19:55
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2 Answers 2

It is advisable that you engage a tax consultant to understand the full implications.
The Company is liable to deduct tax at source and deposit that with the Government of India, Tax Department.
Your company is obligated to give you form 16.
You can safely take up the new job and keep following up with your old company about the tax.

There is quite a bit of information by PWC in this pdf
http://www.pwc.com/en_IN/in/assets/pdfs/foreign-nationals-working-in-india.pdf

Please note there is no difference between a Non Citizen of Indian Origin or a Foreign National by Birth.

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THanks very much Mr Dheer. –  Ram Kar Apr 28 '12 at 10:31
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First of all you should know that the status of your for FY 2011-12 ( Assessment Year 2012-13) is Resident But Not Ordinarily Resident (RONR) and not Non Resident.

How does it affect you?

It affects you positively you, that you are liable in the FY 2011-12 only for income earned or accrued or arising or received in India. For resident worldwide income is taxable.

So, for that purpose, you will have benefits of not being taxed for any other income which might have arisen in Singapore.

Whether Salary earned from your Singapore employer taxable in Indian for Fy 2011-12?

Please note that facts you have given is too less to venture any detailed answer. However, only on the little facts , I am providing you the answer.

Say the stay of yours were on a project of your company,......the fact of the said project as well as the DTAA between Singapore and India on the type of work in which you were involved will matter to decide.

Anyway, if the salary was taxable in India , you are not the first one responsible for tax payment. It is your company (I suppose they have India presence!) which is liable fr TDS u/s 192.

Article 15 of the DTAA between India and Singapore deals with Salaries , wages etc. Read it carefully below

ARTICLE 15 : Dependent personal services –

  1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a ContractingState in respect of an employment shall be taxable only in that State unless the employment is exercised in the other ContractingState. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
  2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a ContractingState in respect of an employment exercised in the other ContractingState shall be taxable only in the first-mentioned State, if : (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant fiscal year ; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
  3. In the case of a recipient who satisfies all the conditions under sub-paragraphs (a), (b) and (c) of paragraph 2, if his remuneration is deductible as an expense against fees for technical services (dealt with under Article 12) derived by his employer and the employer has no permanent establishment in the other Contracting State, the remuneration may, notwithstanding the provisions of paragraph 2, be taxed in that State. In such case, the tax so charged shall not exceed 15 per cent of the gross amount of the remuneration.
  4. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a ContractingState shall be taxable only in that State.
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