ISSUE OF ONE TIME CLEARANCE CERTIFICATE IN RESPECT OF FOREIGN EMPLOYEES

Obtaining the tax clearance certificate in the case of Foreign employees not domiciled in India each and every time such employee wants to go abroad is cumbersome and time consuming. In order to remove this difficulty there is a provision of issuing a one time clearance certificate to such foreign employees not domiciled in India who have a fixed tenure of service in India of up to five years, to travel abroad any number of times during the period of contract of their services.

This one time clearance certificate is given in the case of those foreign employees whose employer gives a guarantee in the prescribed form that if any tax is found due against the employee during the entire period of the contract of the service plus two years, the same shall be paid by the employer. The guarantee may also cover the tax liabilities of the spouse and dependents of the foreign employee, who would also be entitled to the benefit of the one time clearance certificate. The above procedure will apply only in such cases where the employer of the foreign employee is an Indian concern., or a foreign concern which is assessed to tax in India and has a fixed place of business in India.

In the cases where the guarantee in the above form is furnished, the tax clearance certificate issued by the Assessing Officer or by the foreign section will be valid for journeys to be performed by the foreign employee upto the last date of the contract of service as mentioned in the guarantee form.