International employment
6 months ago
If an Indian employee who is posted in Africa as an employee is on leave to India and is working from home and he needs to be paid salary for that month how can we pay his salary. can we show him as a consultant during this period with out resignation from his employee status? Can his salary be paid to him in INR or it has to be USD? what are the legal and tax mandates to be followed in this case?
thanks and regards
A.Dear Client,
Temporary placement of a permanent employee other than his permanent place of posting does not change his status or position of employment which is contrary to the interest of the employee so far as the terms of employment are concerned. You need to pay the salary following the terms of employment which is normally followed when the employee is posted abroad preferably considering the convenience of both employee and employer. There are no hard and fast rules for the disbursement of salary for his temporary placement other than his permanent place of posting that even does not have a major implication of tax on his annual income which is deducted at the source by the employer.
Temporary placement of a permanent employee other than his permanent place of posting does not change his status or position of employment which is contrary to the interest of the employee so far as the terms of employment are concerned. You need to pay the salary following the terms of employment which is normally followed when the employee is posted abroad preferably considering the convenience of both employee and employer. There are no hard and fast rules for the disbursement of salary for his temporary placement other than his permanent place of posting that even does not have a major implication of tax on his annual income which is deducted at the source by the employer.
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A.Dear
Converting an employee to a consultant without a formal resignation may have legal and tax implications and the currency for payment depends on the terms of the employment contract, the location of the company's payroll processing and ensuring compliance with both Indian and African tax regulations regarding salary payments, especially when an employee is working remotely from India
Converting an employee to a consultant without a formal resignation may have legal and tax implications and the currency for payment depends on the terms of the employment contract, the location of the company's payroll processing and ensuring compliance with both Indian and African tax regulations regarding salary payments, especially when an employee is working remotely from India
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