Will the following factor income be included in domestic factor income of India ? give reasons for your answer :
(i) Compensation of employees to the residen of Japan working in Indian embassy in Japan.
(ii) Payment of fees to a Chartered Accountant by a firm.
(iii) Rent received by an Indian resident from Russian embassy in India.
(iv) Compensation given by insurance company to an injured worker.
(i) Yes, it will be included in domestic factor income of India as Indian embassy in Japan is a part of domestic territory of India.
(ii) No, payment of fees to a chartered accountant by a firm is an intermediate expenditure for the firm, hence will not be included in domestic factor income of India.
(iii) No, rent received by an Indian resident from Russian embassy in India will be included in domestic income of India as Russian embassy is not a part of domestic territory of India.
(iv) No, as compensation is given by the insurance company to the employee and not by the employer. COE refers to monetary and non-monteary benefits received by an employee from his/her employer.