Dominance of DPS Article over Sec 5(2)(a) of the Domestic Law – British Gas reiterated . The AAR recently reiterated the principles of an earlier ruling in British Gas Ltd [AAR/725/2006] on taxability of salaries received in India by Non-Resident Indians. In [1] Hewlett Packard [AAR 1217 of 2011, Jan 2018], the issue before the Authority was whether salary paid in India to Indian employees deputed abroad for services to a foreign company, was chargeable to tax in India; and whether in the year of their return to India, the Indian employer could grant credit of taxes paid abroad in computing the withholding tax u/s 192 of the Income Tax Act. The facts of the case briefly are that the employees of the Indian company were deputed to group companies in USA / Germany and over time they acquired status as Tax Residents of US / Germany owing to their presence in the said countries. The employees w
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