Hi all,
Our parent Company (registered in US) is in the process of recruiting foreign nationals as Trainees for a specific period of say 3 - 6 months. They will be sent to India for training by a Company which has business relationship with them. The foreign company proposes to provide Guest House facilities and also a fixed sum every month as stipend. The stipend in Indian Currency is to meet their expenses.
The Guest House will be maintained for Training purposes by the Indian Company.
My question is : 1. Is the Indian Company permitted to pay to the Foreign nationals the stipend and also the Guest House maintenance charges to be debited to the Foreign Company and recovered as Service rendered.
2. What are the tax implications?
Regards,
Paddutr
Our parent Company (registered in US) is in the process of recruiting foreign nationals as Trainees for a specific period of say 3 - 6 months. They will be sent to India for training by a Company which has business relationship with them. The foreign company proposes to provide Guest House facilities and also a fixed sum every month as stipend. The stipend in Indian Currency is to meet their expenses.
The Guest House will be maintained for Training purposes by the Indian Company.
My question is : 1. Is the Indian Company permitted to pay to the Foreign nationals the stipend and also the Guest House maintenance charges to be debited to the Foreign Company and recovered as Service rendered.
2. What are the tax implications?
Regards,
Paddutr