Is your employee Indian citizen or expat? For Indian employees, if the amount payable exceeds Rs 30,000/- in one financial year then under section 194J of IT Act, 10% TDS is deducted before paying the consulting charges. This is for individual professional only and not for companies. In fact your accounts department would know this.
Thanks for your above suggestion.
Please note the employee i am referring to is Indian Citizen and ofcource his income exceeds 30000 but please notenow he has earned a consultancy fees as Non taxable for the cosultation done in Overseas and my question is whether this income would be considered as taxable In India when he files his current year IT return.
Request you to please advice for the above.
In which books of account you will show the consulting charges? If it is Indian company, then TDS should have been deducted while paying the consultancy charges itself. TDS deduction does not depend on the location or place of consulting.
Take my case. Suppose some training company hires me for the training assignment. However, this assignment is at abroad. But then while making payment, they will have to deduct the TDS.