In this issue:
- Payroll Calculation, Processing, and Reporting in India
- The Social Security System in India
- The Applicability and Calculation of Gratuity in India
- Outsource Payroll Processing and Optimize your Business Operations
Businesses in India have to contend with the dual challenge of employment laws and regulations derived from multiple sources. Some of these sources are the constitution, labor statutes, judicial precedents, and collective and individual agreements.
In addition, labor matters come under the concurrent list of subjects in the Indian constitution. This means that labor regulations are in the jurisdiction of both federal and state governments, which have respectively enacted numerous laws on labor relations and employment matters.
These directly impact payroll considerations in the country as they shape the provisions for holidays, leaves, minimum wages, social security, and penalties for non-compliance. India’s tax environment can also be complicated for small and medium sized enterprises as well as foreign managers. Companies in India need to stay alert to the latest regulatory changes when computing payroll tax and deductions. These include personal income tax for employees, social security costs, and withholding tax.
In this edition of India Briefing Magazine, we discuss payroll processing and reporting in India, and the various regulations and tax norms that impact salary and wage computation. Further, we explain India’s complex social security system and gratuity law, and how it applies to companies. Finally, we describe the importance of IT infrastructure, compliance, and confidentiality when processing payroll in India.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
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Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.
An Introduction to Doing Business in India 2017 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to stay up-to-date with the most recent and relevant policy changes.
Working as an Expat in India
In this issue of India Briefing Magazine, we look at India’s living and working environment, HR and payroll laws, and the taxation norms as applicable to foreign nationals. India is the second most favored destination for expatriates that want to work in the emerging markets. Expatriates should take note of the basic social and welfare concerns as well as the regulatory and tax issues that apply to foreigners that work in the country.