Taxpayer not eligible to claim short stay exemption under the DTAA as the salary was paid directly by the Indian subsidiary

Madras High Court has recently held in the case of CIT Vs R. Rajgopal [TS-222-HC-2011 (MAD)] that, as the salary was paid directly by the Indian subsidiary company, conditions of Article 16(2)(b) of the Indo-UK Treaty was not fulfilled. Accordingly, the taxpayer was not entitled to claim short stay exemption under Article 16(2) of the India-UK Treaty. Facts of the case – 1. Taxpayer was an employee of the UK entity and was working in their London office.  Taxpayer had worked in India for 20 days with Indian Subsidiary of the UK entity. A portion of the salary was payable in India and t...