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Tax liability of a Japanees citizen in India

(Querist) 18 September 2008 This query is : Resolved 
A Japanees citizen arives in India on 13/04/08 for employment in a company registered in Japan and
1.gets salary in Japan in the Japanees currency(Yen) although he works in India.
2. NO TDS is deducted after he came in India.
3. In India he gets his allowances in US$.
ISSUES:1.His status in India, 2.His total taxable income in India,3.Tax relief under DTAA,4.If income is taxable in india conversation rate of Japanees'Yen,5. Whether deduction under Sec. 80C to 80U will be available 6.whethet deduction available in Japan will also be available in India.
Guest (Expert) 19 September 2008
As on date he has not completed 182 days of service, therefore he is still a non resident. He will not be taxed in India. TDS may be deducted to avoid penalty in India for the safety of the employer. DTAA is applicable. As of now no 80C and Deduction in Japan can be taken credit if paying tax in India.
garibnathsah (Querist) 19 September 2008
dear sir,
thanks for giving solution to my query but just take little more pain and tell me if that person is taxable in India what conversion rate will be applicable to him.
Thanking you once again for taking pain for me.
ARVIND JAIN (Expert) 19 September 2008
JAPANEES YEN RECD IN JAPAN WILL BE CONVERTED IN RUPEES AND WILL BE SUBJECT TO TAX.
garibnathsah (Querist) 19 September 2008
dear sir,
yes, it is fine that it wii be converted in rupee but the question is whether it will be converted at the rate of conversion at the month end or rate existing on at the end of financial year.
with thanks and regards.
garib nath sah
ARVIND JAIN (Expert) 19 September 2008
IT WILL DEPEND ON WITHDRAWAL AND BALANCE AT THE END OF THE YEAR.
garibnathsah (Querist) 22 September 2008


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