Authority held that ; Employees of Indian company sent on assignments , employees residents of those countries and liable to tax on their worldwide income in those countries for period of their assignment income did not accrue in India and not chargeable to tax in India Indian Company is not liable to deduct tax on salaries paid in India .Once employees returned and became residents Indian Company can give credit for taxes deducted during deputation outside India .
Hewelett Packed India Software Operation P. Ltd.,in re (2018) 401 ITR 339/ 162 DTR 337/ 301 CTR 12 (AAR)
S. 5 : Scope of total income – Non-resident — Employees of Indian company sent on assignments – Employees residents of those countries and liable to tax on their worldwide income in those countries for period of their assignment income did not accrue in India and not chargeable to tax in India — Indian Company is not liable to deduct tax on salaries paid in India — Once employees returned and became residents Indian Company can give credit for taxes deducted during deputation outside India – DTAA- India – Germany – USA [ S. 2(45) 4, 5(2) 9(1)(ii) 15, 90, 192 , Art.4(1) , 23,25 ]