Dear Seniors,
One of my clients has engaged a contracting company to execute project work on a contract basis. This contracting company is a foreign entity and is planning to carry out the work with the assistance of foreign laborers. The laborers will be paid in foreign currency, as per my understanding from the client.
Applicable Laws and Liabilities
Under these circumstances, what laws are applicable to the contracting company, and what are the liabilities of my client, i.e., the Principal Employer?
Certainly, Indian Labor Laws such as the Contract Labor Act, Minimum Wage Act, EPF Act, etc., are applicable to the contract laborers. Besides Indian Labor Laws, are there any other laws concerning their migration, and is there a requirement for any permissions, registrations, or licenses in this regard? Additionally, what about Professional Tax (PTax)?
Tax Considerations
Income Tax is governed by the Income Tax Act. However, are there any exemptions in PTax, which is a tax on Professions, Trades, Callings, and Employments?
Can anybody shed light on this issue?
Thanks in anticipation.
Regards,
Keshav Korgaonkar
[Shantadurga Enterprises](http://www.shantadurgaent.com)
Cell: [Phone Number Removed For Privacy Reasons]
From India, Mumbai
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2584One of my clients has engaged a contracting company to execute project work on a contract basis. This contracting company is a foreign entity and is planning to carry out the work with the assistance of foreign laborers. The laborers will be paid in foreign currency, as per my understanding from the client.
Applicable Laws and Liabilities
Under these circumstances, what laws are applicable to the contracting company, and what are the liabilities of my client, i.e., the Principal Employer?
Certainly, Indian Labor Laws such as the Contract Labor Act, Minimum Wage Act, EPF Act, etc., are applicable to the contract laborers. Besides Indian Labor Laws, are there any other laws concerning their migration, and is there a requirement for any permissions, registrations, or licenses in this regard? Additionally, what about Professional Tax (PTax)?
Tax Considerations
Income Tax is governed by the Income Tax Act. However, are there any exemptions in PTax, which is a tax on Professions, Trades, Callings, and Employments?
Can anybody shed light on this issue?
Thanks in anticipation.
Regards,
Keshav Korgaonkar
[Shantadurga Enterprises](http://www.shantadurgaent.com)
Cell: [Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Dear Keshav,
An international worker will hold an employment visa along with an employment contract. The minimum salary would not be less than $25,000 USD. They need to register for a residential permit. There are no exemptions in PT and IT if they are paid in foreign currency. They will be governed by Indian labor law.
Thank you.
From India, Bhubaneswar
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An international worker will hold an employment visa along with an employment contract. The minimum salary would not be less than $25,000 USD. They need to register for a residential permit. There are no exemptions in PT and IT if they are paid in foreign currency. They will be governed by Indian labor law.
Thank you.
From India, Bhubaneswar
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PF-Internationa l workers.pdf
PF notfications - International Workers.doc