23 June 2016 India High Court rules on taxability of per diemsexpat The Indian High Court has ruled that employees who receive per diem allowances when working away from their normal place of duty do not need to verify that the allowance was actually spent. This is on the condition that the per diem paid is justifiable and not unreasonably high in comparison to the salaries of the employees. The ruling confirms positions previously adopted by Indian tax tribunals and general clarifications issued by the Indian Government but employers are advised to rely on it based on a review of their specific circumstances, as the existing circular on tax withholding issued by the Indian tax office is not explicit on this matter. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1103 |
