I'm an Indian CITIZEN having a USA LLC in Wyoming STATE (100% owned by me) and a US Virtual Bank Account under the LLC's name. I run an eCommerce Business and all the revenue from the website goes to my US BUSINESS bank account WHICH is open under MY LLC. I then transfer that revenue from the US bank account to my local Indian savings bank account . I wanted to know if the money earned is taxable both in the USA and India or just in India? If it's taxed by both countries (double taxation), can I claim "Credit of tax" paid in the USA, while filing for income tax return in India? Also, I'm a sole owner of the US LLC with no additional members. I'm willing to work with you also for tax filing if everything's working smoothly. I have asked around a lot and nobody seems to have a clear answer for Double Tax Avoidance Agreement (DTAA) . for tax saving if i open India Proprietorship Firm Register can save legally tax here also Please advise me on that and we go from there.
It depends on what type of LLC you have earned and what declaration you have made under FEMA?
Yes you can claim credit if the amount is taxed in both countries.
Rather than opening a proprietorship concern open an LLP or partnership in India
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
- Incidence of tax depends on the residential status of a person. If you are Resident and Ordinary resident (ROR) then global income would be taxable in your hand. Global income is aggregate of Indian income and foreign income. If any income is liable to double taxation then foreign tax credit (FTC) would be available on such income. If you are ROR in India in previous year then US income would be taxable in India and you can claim FTC of taxes paid in USA on such income. I can assist you in filing of tax returns.
For detailed discussion, you may opt for phone consultation.
