Short term Business visits by Foreign nationals to India

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  1. trumbellman

    trumbellman New Member

    I have a question on Taxation of remuneration eared by foreign nationals visiting India on Biz for short stay.

    I am a US national who visited India last financial year 2015-16 for 118 days on Business and was paid by my US employer in USD in US. I was in India the prior financial year 2014-15 for 75 days and I would qualify as a NON-RESIDENT in India per other criteria.

    Question is do I need to pay taxes in India for the remuneration paid by my employer in US in US for the services rendered in India during 2015-16 as part of my business visit to India.

    I came across the below Section and Article and need validation from the esteemed members of this forum. I meet all the criteria outlined here, however have seen some posts/advise by tax firms where any foreign income earned in India is taxable to India and hence this question.

    Can you please advise.

    Exemption for short visits , cumulative conditions below must be met –

    Income tax S. 10(6) (vi)- salary is exempt if

    -Foreign enterprise is not engaged in trade or biz in India

    -Employee does not stay for more than 90 days in the previous year

    -Salary is not x-charged from US to India

    And per DTAA (ART 15(1) R.W ART 15(2))

    -Employee does not stay for more than 183 days in the financial year

    -Remuneration is paid by the non-resident employer (in this case US)

    -Remuneration is not borne by PE or FB of employer in India
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