In this case please keep all the FIRC ( Foreign inward remittance certificate ) with yoursef. Further please ensure that the inward remittance which has been meant for the salary to the foreigner employee in India is separately visible in your bank statement both the credit side and debit side .
As per the tax there are few things which are important -
1. The employer should deduct the tax ( TDS ) on salary income of the foreigner - This is missing ( perhaps )
2. The employee in India is liable to pay tax and file return . please ensure they file the return and show the income of Rs 1lac PM as shown above .
3. Please take an acknowledgement of such receipt of the amount each month .
4. Please ensure that the employee are on employment visa and not any other visa and he has a FRRO registration .
5. What about the PF /PPF complaince as he may become the foreign worker .
From the tax prospective , please ensure that there is proper mentioning in the FIRC , proper acknowledgement and most important the employee are filling the ITR and paying the tax .