While the recent budget encourages the income sources of expatriates who are tax residents in India, a new service to assist them has emerged through the Internet. Arthur Andersen, in collaboration with Craighead Publications and the EIU (The Economist Intelligence Unit) is offering `CountryNet' -- an on-line information centre for expatriates and international business travellers.CountryNet is an Internet-based
information centre for international assignees and global business travellers with information available on more than 80 countries. The software is priced between US $ 7-15, on an average, depending on the number of users in an organisation.
For each country, in-depth and current information is available on the following topics: Expatriate tax guide, country overview, customs and import regulations, medical and security reports, business culture and customs, everyday living conditions, expatriate social life, sources of useful local information, what every expatriate and family mustknow, how to find a home or a school, what to take to the country, economic and political background and analysis and a database of links to more than 200 other useful Web sites.On a CountryNet system, the company's users can build a personal profile of information they are interested in viewing.
They may build as many personal profiles as they like. The company's corporate logo will be added to the service as a part of subscription. Additionally, technology specialists from Arthur Andersen and information experts from Craighead Publications and the Economic Intelligence Unit can work with the company to:
Add a corporate human resources bulletin board for company wide news and messages Distribute mass e-mail to the company's CountryNet users Add a human resources area for posting policies, guidelines and more to the company's international community Develop new or customised country information. Of course there is instant worldwide access. No matter where the company's officesand employees are located around the world, their associates can access CountryNet themselves, right from their desk-tops, lap-tops, hotels or home.At present, an expatriate is regarded as an Indian tax resident if such a person is present in India:
For a period of 182 days or more during the tax year (April 1 to March 31) or 60 days or more in a tax year and 365 days or more during the preceding four tax yearsUnder the existing tax law, an expatriate arriving in India on an assignment would be classified as a `not ordinary resident' and generally would be liable to tax in India only on his Indian sourced income. Income earned outside India would be exempt from tax.
The withdrawal of the `not ordinary resident' status may result in salary, property, income dividends, interest capital gains earned by the expatriate outside India being exposed to tax in India.
However, gradually, credit should be available for taxes paid outside India. Relief may be available under tax treaties enteredby India with several countries, if the expatriate continues to be a tax resident of his home country. Specific treaty provisions will have to be reviewed before any definite conclusions are reached.
The travel reimbursement received by an expatriate from his employer for his children studying outside India for their visit to India is exempt from tax. This exemption is now proposed to be withdrawn.
At present, representations are being made to the government requesting for a rethink on the issue on withdrawal of benefits to the expatriates.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
