Expatriate workers' entire salary taxable

Foreign Enterprises

 As per Section 9 of the Act, salary is deemed to accrue or arise in India if it is earned in India.

 The salary relating to the period during which service is rendered in India shall be treated as earned in India and, therefore, will be liable to tax in India.

 The implication of this provision is that an expatriate employee, who receives his salary wholly outside India, or partly in his home country and partly in India, is liable to pay tax in India on his entire salary, including the portion of salary received outside India.

 These provisions are, however, subject to any specific provision contained in the tax treaty between India and the foreign country to which the employee belongs.

 The meaning of the term