Hiring Foreign Consultant - CiteHR
Talentsorcerer
Talent Acquisition Expert
Hrbuff
Service
Aviraj Nandan
Hr Generalist

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Dear Seniors,
We are planning to hire a person as a consultnat for a year in Australia for looking business development activities.The person is Australian citizen of indian origin. We are an Indian company registred in Delhi. We dont have any offices in Australia.
1.Can we make the paroll of that person from India?
2.What will be tax laibilty of that person?
3.what all are the formalities to be done for him?
please guide me on all the above ponits to help me out
Regards,
HR buff

HR buff: You can't issue a full time employment letter for this resource. Instead you need to issue a consulting contract, valid for a year and stating his role/objectives clearly.
Since it's a consulting contract, you will not be liable to pay taxes, but he's responsible for taxation on his monthly fee in line with Australian tax norms.
You also need to issue a 'letter of representation' stating his role and indemnifying you against any malpractices he may be responsible for and limiting his signature to only necessary documents like a voucher, etc and not to agreements or contracts on behalf of your firm.
Hope this helps.

Thanks for the guidance sir but since we are hiring the guy as a consultant (professional) for a year and his fee is being paid from India. Isn't he liable for professional tax in India?
for that we need to get his PAN card prepard in India.Please correct if i am wrong and throw some more light in this
Regards,
Hrbuff

The individual is not getting paid in India and hence no requirement of getting a PAN card prepared in India- the taxation aspect shall be borne by him in his homeland. For the purpose of his salary/consultant fee, the mode of remittance should also be defined and the contract letter should be legally verified.
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