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Richa (Head HR)     09 September 2014

Hiring nepalese citizen on india company payroll

Dear all,

I have gone through a few posts on the subject and have come to understand that Nepalese citizens can be hired without work permit and Visa issues.

We intend to hire a Nepalese citizen in Sales team in Nepal, who will be stationed in Nepal only. Could you also please clarify the following doubts :

1. Do we need to deduct EPF for the person? If yes, will it be as per India Laws and submitted to the Indian Govt?

2. Do we need to deduct TDS? If yes, wil the procedure be same as that for an Indian citizen?

3. Can we pay his salary by International Bank Transfer? Urgent reply will be appreciated. Thanks a lot for your help!

 

Best Regards, Richa





Learning

 5 Replies

Sudhir Kumar, Advocate (Advocate)     09 September 2014

1. Do we need to deduct EPF for the person? If yes, will it be as per India Laws and submitted to the Indian Govt?

 

Ans : Yes. EPF Act doe snot exclude a foreigner employee and also does not exclude employee posted abraod.

2. Do we need to deduct TDS? If yes, wil the procedure be same as that for an Indian citizen?

Ans : Whether they will pay income tax in India by Indian PAN No.

3. Can we pay his salary by International Bank Transfer?

Ans : Not a legal point.

Kumar Doab (FIN)     09 September 2014

If you do everything on your own you may err.

There are payroll services that shall handle the matter for a nominal fee.

>>> PF: You may go thru:

Special Provisions  for International Workers (FAQs):

20) Whether foreigners employed directly by an Indian establishment are coverable?

Foreigners employed directly by an Indian establishment would be coverable under the EPF and MP Act, 1952 as IWs and would not be eligible for the benefit of detachment under a SSA.

https://epfindia.com/faq_IntWorker.pdf

>>> TDS: Go thru section 195 , however let your Income Tax Lawyer finally opine on it.


Attached File : 801643031 iwu updtdfaqs 19112012.pdf downloaded: 439 times

Sudhir Kumar, Advocate (Advocate)     09 September 2014

a very useful attachment provided by Mr Kumar Doab.

Tejal Solanki   08 June 2021

Hi All,

Need your guidance.

My Company is an Indian Company which is into manufacturing of food & beverages. My Company planning to expand their business in Nepal specially into sales. We do not want to set up a branch in Nepal but want to hire an associate to work for us. Hence, we need your guidance on what formalities or compliances need to be follow in the following case:

1. Hiring an Associate with Indian nationality traveling to Nepal to expand our business.

2. Hiring an Associate with Nepalese nationality based at Nepal on rolls of the Indian Company, his salary will be credited from India.

 

Regards,

Tejal Koravat

Sudhir Kumar, Advocate (Advocate)     19 June 2021

Originally posted by : Tejal Solanki
Hi All,

Need your guidance.

My Company is an Indian Company which is into manufacturing of food & beverages. My Company planning to expand their business in Nepal specially into sales. We do not want to set up a branch in Nepal but want to hire an associate to work for us. Hence, we need your guidance on what formalities or compliances need to be follow in the following case:

1. Hiring an Associate with Indian nationality traveling to Nepal to expand our business.

2. Hiring an Associate with Nepalese nationality based at Nepal on rolls of the Indian Company, his salary will be credited from India.

 

Regards,

Tejal Koravat

 

basically not a legal query. 


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