India nundi work

[Jatka Bandi]

2 minutes ago, JackSeal said:

The conclusion is if your company is ok with running US payroll while in India for any infinite period, no law is stopping to do so.

Telangana govt edo rule pass chesindanta mama.. recent ga Apple vaalle mottukuntunnaru.. kanukkuni chepta vundu..

[Spartan]

29 minutes ago, JackSeal said:

The conclusion is if your company is ok with running US payroll while in India for any infinite period, no law is stopping to do so.

@JackSeal

if the employee is working for US payroll in India for more than 180 days..

then the employee has to report and file taxes in India. idi 2020 lo rule vachindi..

and companies has to pay their share of employer taxes in India as well..

anduke they are saying no to any employee working more than 179 days.

Consulting unte...no rules..they will do some jugaad....

that is the conclusion.

 

[r2d2]

6 minutes ago, Spartan said:

and companies has to pay their share of employer taxes in India as well..

it gets complicated if the company doesn't have an office in India..

[Spartan]

1 minute ago, r2d2 said:

it gets complicated if the company doesn't have an office in India..

yes

[tables]

13 minutes ago, Spartan said:

@JackSeal

if the employee is working for US payroll in India for more than 180 days..

then the employee has to report and file taxes in India. idi 2020 lo rule vachindi..

and companies has to pay their share of employer taxes in India as well..

anduke they are saying no to any employee working more than 179 days.

Consulting unte...no rules..they will do some jugaad....

that is the conclusion.

 

180 days in a financial year ?

[Picheshwar]

23 minutes ago, tables said:

180 days in a financial year ?

Kadu fiscal year 🤡 

[JackSeal]

49 minutes ago, Spartan said:

@JackSeal

if the employee is working for US payroll in India for more than 180 days..

then the employee has to report and file taxes in India. idi 2020 lo rule vachindi..

and companies has to pay their share of employer taxes in India as well..

anduke they are saying no to any employee working more than 179 days.

Consulting unte...no rules..they will do some jugaad....

that is the conclusion.

 

So that rule supersede what’s there in DTAA ? Which rule is that ?

Afiak there is no such thing called employer share in tax in India. In US employers share social security/fica tax.

 180 days rule is to determine wheather your residnet or non resident indian for tax purpose … it’s your responsibility to file returns in India and claim deductions for tax already paid in US at source. If you stay less than 180 days no need to file IT returns in India that’s what it mean.

You are mixing so many things. Read section 6(1A) of finance act 2020 …

foreign companies are not liable for your failure to file income tax in RoR status and claim deduction 

That act is specifically intended for NRI who resides in no income tax countries with fOreign and indian income source 

so companies will have no issues legally but it’s up to their company policy and employee welfare 

[JackSeal]

38 minutes ago, Spartan said:

yes

It won’t get complicated, it will be treated as income arised outside India and its responsibility of individual to files taxes if he stays more than 180days that’s what finance act 2020 mean … finance act 2020 still honors DTAA and you can claim deductions on income tax filed in USA

[JackSeal]

58 minutes ago, r2d2 said:

it gets complicated if the company doesn't have an office in India..

India lo corporate tax vundhi ani telsu kani income tax lo employer share appudu add chesaru ?

[linksys23]

21 hours ago, JackSeal said:

No issues my colleague is working from India on US payroll for last 2 years, if company is ok with that no issues … other guy went for vacation and worked from india for 5 months and he just came back … 

if they have stamping issue--221g  then its OK.else   better not to do these things

[Jatka Bandi]

@Spartan @JackSeal @r2d2

On 2/11/2022 at 11:51 AM, Jatka Bandi said:

Telangana govt edo rule pass chesindanta mama.. recent ga Apple vaalle mottukuntunnaru.. kanukkuni chepta vundu..

Reporting back.. ninna ivaala meeting lu pettam.. discussed this thoroughly with my friend who is a CA and head of Corp Tax division in a reputed company.. Another CPA.. and a HRBP from my ex-employer..

In short, there is no statutory code on either side that limits a person to work from overseas..  

There are 2 parts - personal tax and corporate tax. Personal tax is up to the person but as a steward of the company, Corp Tax dept is obligated to protect the company's best interests so the corporate tax part needs to be managed properly. 

From a corporate standpoint, the host country views this as the home entity earning income in the host country and may deem that since they are earning money from the services of the individual from there, they should also have to pay tax there. Then the home entity is required to file in the host country. This not only creates an additional financial burden for the company but during the filing they are required to reveal certain pieces of business information that they may not want to reveal in that country. This is why if you look at all the corporations, they register their corporation under a different name limited to their ambitions in that country.

From a corporate tax perspective traveling and working remotely in a foreign country (i.e., not the employer’s country of incorporation) creates a corporate tax risk to the employer in that local country. We also vetted that there is no threshold for number of days working abroad (unlike the rules for personal income tax based on fulfilling residency rule) for this corporate tax risk to arise, rather the rules just state that where a company has an ‘office’ (which can include a home office) in the local country then the company may be treated as having a taxable presence there. They will be required to file a corporate tax return, pay local corporate taxes, and potentially be required to disclose sensitive corporate information. For example, my previous employer is called ABC, Inc. in the home country US. But, in India, they are registered as ABC Operations India. In this case, they are not required to disclose information outside operations to the local govt if a politician targets the corporation. That's why employers recommend you to get hired locally if that were the case.. they protect themselves by seconding the employee (or loaning the employee) to the local entity to avoid issues. It is more of a convenience to the employer at this point and big corporations play safe because of things at stake.

We also discussed why this is not the case with employees on paid time off visiting their home country as they technically are still getting paid? Holiday time is actually earned before the employee visits another country, that is why they show in the balances of the company. And holiday time is not considered as "working". Same with customer visits. Many of us log in during vacation and perform some job. ee situation vachi argue cheste kanaka, corporation will say it is our voluntary action but they still paid you under holiday time.  

Stuck in India because of CoViD antaara, the world knows.. One of the roles of the Tax dept is to determine risk thresholds if we do or do not have a defensible stand in the event that some politician with a personal vendetta comes after a corporation.. Corp Tax and Strategy departments have been working with Legal on a strong defense case.. Remember, money speaks at the end and corporations have a lot of it.

 

idi chaalinka.. mee godava valla oka kotta topic nerchukuni intha raasa.. in appreciation, eppudanna seed funding ki vaste kaadanakunda money ivvandi..  

[JackSeal]

14 minutes ago, Jatka Bandi said:

@Spartan @JackSeal @r2d2

Reporting back.. ninna ivaala meeting lu pettam.. discussed this thoroughly with my friend who is a CA and head of Corp Tax division in a reputed company.. Another CPA.. and a HRBP from my ex-employer..

In short, there is no statutory code on either side that limits a person to work from overseas..  

There are 2 parts - personal tax and corporate tax. Personal tax is up to the person but as a steward of the company, Corp Tax dept is obligated to protect the company's best interests so the corporate tax part needs to be managed properly. 

From a corporate standpoint, the host country views this as the home entity earning income in the host country and may deem that since they are earning money from the services of the individual from there, they should also have to pay tax there. Then the home entity is required to file in the host country. This not only creates an additional financial burden for the company but during the filing they are required to reveal certain pieces of business information that they may not want to reveal in that country. This is why if you look at all the corporations, they register their corporation under a different name limited to their ambitions in that country.

From a corporate tax perspective traveling and working remotely in a foreign country (i.e., not the employer’s country of incorporation) creates a corporate tax risk to the employer in that local country. We also vetted that there is no threshold for number of days working abroad (unlike the rules for personal income tax based on fulfilling residency rule) for this corporate tax risk to arise, rather the rules just state that where a company has an ‘office’ (which can include a home office) in the local country then the company may be treated as having a taxable presence there. They will be required to file a corporate tax return, pay local corporate taxes, and potentially be required to disclose sensitive corporate information. For example, my previous employer is called ABC, Inc. in the home country US. But, in India, they are registered as ABC Operations India. In this case, they are not required to disclose information outside operations to the local govt if a politician targets the corporation. That's why employers recommend you to get hired locally if that were the case.. they protect themselves by seconding the employee (or loaning the employee) to the local entity to avoid issues. It is more of a convenience to the employer at this point and big corporations play safe because of things at stake.

We also discussed why this is not the case with employees on paid time off visiting their home country as they technically are still getting paid? Holiday time is actually earned before the employee visits another country, that is why they show in the balances of the company. And holiday time is not considered as "working". Same with customer visits. Many of us log in during vacation and perform some job. ee situation vachi argue cheste kanaka, corporation will say it is our voluntary action but they still paid you under holiday time.  

Stuck in India because of CoViD antaara, the world knows.. One of the roles of the Tax dept is to determine risk thresholds if we do or do not have a defensible stand in the event that some politician with a personal vendetta comes after a corporation.. Corp Tax and Strategy departments have been working with Legal on a strong defense case.. Remember, money speaks at the end and corporations have a lot of it.

 

idi chaalinka.. mee godava valla oka kotta topic nerchukuni intha raasa.. in appreciation, eppudanna seed funding ki vaste kaadanakunda money ivvandi..  

conclusion in two lines ? can a employee work indefinitely on US payroll from India or not ? Assuming he is filing tax returns in India and US 

[Jatka Bandi]

44 minutes ago, JackSeal said:

conclusion in two lines ? can a employee work indefinitely on US payroll from India or not ? Assuming he is filing tax returns in India and US 

read third line. This is a decision rooting from corporation's liability. Being sane, I do not think you will be allowed to work from overseas indefinitely.

[Spartan]

24 minutes ago, Jatka Bandi said:

read third line. This is a decision rooting from corporation's liability. Being sane, I do not think you will be allowed to work from overseas indefinitely.

@Jatka Bandi yes nenu ade refer chesa as employer taxes 

ma @JackSeal anna avanni lavda lassan em lev annadu saying u can work for longer periods

[Jatka Bandi]

3 minutes ago, Spartan said:

@Jatka Bandi yes nenu ade refer chesa as employer taxes 

ma @JackSeal anna avanni lavda lassan em lev annadu saying u can work for longer periods

Corporate taxes kante main concern corporate liability. Paina mottam chaduvu. Time spend chesi complete picture techinaam.