Compliance

Querist : Anonymous (Querist) 24 August 2020 This query is : Resolved
We are having employee on our roll but reporting outside India to our group company . no reporting to Indian party
We are billing for these HC to group under transfer pricing
Query is whether having an employee on my roll and reporting outside India will not have any tax or compliance issue in india

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Quick Summary

This discussion addresses concerns about employees on an Indian company's payroll but reporting to an overseas group company. While employees working abroad are taxed according to local regulations, avoiding double taxation, the Indian company remains subject to Indian tax laws. Professional advice from a CA or lawyer is strongly recommended to navigate these complex compliance and tax matters.

Rajendra K Goyal (Expert) 24 August 2020
Employees working out of India have to pay tax there as per taxation rules there.

Double taxation is not attracted.

Company is in India, it would be taxed as per Indian law.

Dr J C Vashista (Expert) 25 August 2020
Commercial query should be dealt by your lawyer / CA.
However, you should maintain a lawyer / CA for all these queries.