Home Forums General General Board Does the indian goverment tax you for working there

Does the indian goverment tax you for working there

Home Forums General General Board Does the indian goverment tax you for working there

Viewing 4 posts - 1 through 4 (of 4 total)
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  • #1118
    stovieheed
    Participant

    Hi Guys,

    Does anyone out there know if when you are working offshore in India you are liable for local tax. I.e when you work in Norway you pay Noggie tax and get nothing back at the end of the year.

    Cheers

    #14498
    Ray Shields
    Participant

    Going down on the Carla soon then are you ? 🙂 🙂

    There is a reciprical tax agreement with India and the UK.

    http://www.incometaxindia.gov.in/publications/9_Income_Tax_For_NRI/Chapter012.asp

    http://www.hmrc.gov.uk/manuals/dtmanual/dt9623.htm

    The way I read it, you will continue to pay UK tax.

    #14499
    Hot Stab
    Participant

    Im not form the UK, but it looks like I will be going there to work.

    So Im wondering, what percentage of tax we will be paying, as I couldnt quite see it in the Indian tax link?

    Much appreciated

    Hotstab

    #14500
    Ray Shields
    Participant

    First, Im no tax expert, best to take advice from an accountant in your country of residence.

    The way I read the Indian tax link, if your country of residence is listed in the table of countries that they have tax agreements with, then you will pay tax to your residence country rather than to India.

    From the LinK:-
    12.2.4 Income derived by rendering of professional services or other activities of independent character are taxable in the country of residence except when the person deriving income from such services has a fixed base in the other country from where such services are performed. Such income is also taxable in the source country if his stay exceeds 183 days in that financial year.

    12.2.5 Income from dependent personal services i.e. from employment is taxed in the country of residence unless the employment is exercised in the other state. Even if the employment is exercised in any other state, the remuneration will be taxed in the country of residence if –

    the recipient is present in the source State for a period not exceeding 183 days; and
    the remuneration is paid by a person who is not a resident of that state; and
    the remuneration is not borne by a permanent establishment or a fixed base.

    Im sure its one of these rules. You musn’t spend more than 183 days in India either for them to apply.

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