Ms. Alicia is a a German national working in Sinsang Ltd., in Turkey. Sinsang Ltd., neither has any office in India nor done any business in India. The company deputed Ms. Alicia to India on 31st January, 2015 for conduc

Section 10 (6) (vi) of Income Tax Act, 1961 states that remuneration received by a foreign national as an employee of a foreign enterprise for services rendered during his / her stay in India is exempt from tax provided: Foreign enterprise is not engaged in any business or trade in India; Stay of employee does not exceed 90 days in such Previous Year; and Such remuneration is not liable to be deducted from the income of employer chargeable under the Income Tax Act. In the given case, Ms. Alicia stayed in India for a period of (1+28+30) 59 days inclusive of the days of coming to and going from India. Since, Ms. Alicia satisfies all the above condition, she is not required to pay tax on US $ 50,000 received by her in India during January to March, 2015. Yes, if Singsang Ltd. had its office in Delhi, it would have mean that foreign enterprise was engaged in business in India and accordingly exemption under section 10(6)(vi) would not have been available to Ms. Alicia.