Tax liability on income earned outside India

As per the income tax Act, since you are resident, your global income is taxable in your hands. Hence, income earned by you from your company can be shown as per the agreement between you and your company. Like the Director's remuneration, Professional services, etc. 

If you are receiving income due to professional service then you can claim 44ADA. provided your gross receipts does not exceeds Rs 50 lakhs.  

You are liable to GST as it seems to be export of service. however, some other point needs to be checked. 

ITR 4s is applicable in case you are opting for 44ADA, otherwise ITR 4

For the first question

- You are not required to pay tax on amount transferred from US company account to your personal account in India. It is remittance of income already taxed in the source country.

- No need to register for GST.

For the second question

- If you earn income by rendering professional services to the company then it would be taxable in India and you can claim the benefit of section 44ADA.

- GST registration would be required if value of services will cross the threshold of 20lacs and you need to apply for LUT. 

Hello,

The taxability of the income by the LLC in India would depend upon whether the LLC has Place of Effective Management(Permanent Establishment) In India as per Article 7 of the India-US DTAA.

You are not required to register if the services are provided from the US.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

For professional services provided to the company, you can use Sec. 44ADA presumptive Taxation subject to fulfillment of its conditions.

This would be the export of professional services, therefore registration under GST would be required.

Dear Sir,

Hope you are doing well !!

-There is no tax liability on remittance/transfer the money you earn from your US company to your Indian local bank account (savings account). 

-No, you do not need to register for GST.

If you earn the income through professional services then the same would be taxable in India.

However, you can take the benefit of presumptive taxation scheme u/s 44ada.

-You need to get GST registration only if your turnover/receipts exceeds the basic exemption limit .

As per DTAA between India and USA the business income earned by a business enterprise would be taxed in the country where it has a permanent establishment.

So in your case it will be taxed in USA.

It is just remittance so no need to pay tax on same.

No GST registration required.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

It depends on what professional service you are providing and if it's eligible you can take benefit of 44ADA.

If the amount exceeds 20 lakh during a year you need to take GST registration.

Hi,

The nature of income will depend upon how the same is treated in the books of US LLC. Whether you are showing it as dividend or director remuneration or professional fees.

Even if you are owner of the company, you can draw salary/ professional fees from the foreign company

GST registration will depend upon how you treat this income and the amount of income.

I would recommend you to draw a professional fees from your US company for the software services provided by you.

Yes, you can take benefit of 44ADA.

If your gross revenue is more than 20 lacs per annum, then you need to register for GST.

Apart from it, transfer pricing regulations is also applicable for transaction between you and your US company. You need to get a certificate from chartered accountant for transaction between you and your US company

We can assist you in all the above compliances.

Dear Sir,

Considering you are a resident individual your total income shall be taxable in India.

The credit of taxes deducted/paid in US can claimed in India as per section 90 of the Income tax Act.

At the time of filing of ITR you need to show the remuneration/profits earned from the firm registered in US.

Hope this helps.

Dear Sir,

1. Since you would be showing the amount as remuneration from other business your whole amount shall be taxable however you shall be getting the credit of taxes paid against the income.

2. GST is applicable on export of services. Since the invoicing is done from the company registered in US you may not avail GST registration.

Suggestion :

You can directly invoice from India so that the complexity is resolved as GST on export is anyways exempted.

How the profit sharing is treated there? Is it dividend? Assuming it's in the nature of dividend:

1. No, GST registration is not required

2. Depends upon your other incomes

3. Other income

4. Yes

No registration under GST required.

ITR Form would depend on your other incomes.

Declare it under Income from Other Sources.

Yes.

You said you own that place and it's your income whatever is earned by you.

If you are earning such income on profit sharing basis and this has not been taxed in USA then you need to pay tax on same in India.

No need for GST registration.

If you don't earn any other income other than LLC then you might just have to file ITR 2 for your foreign income.

Yes it will be taxable.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

1. No.

2. Depends upon your other incomes

3. Other income

4. Yes.