My company has agreed to allow me to work remotely from India. They do not have a presence in india. I will be working remotely for a US client. I am getting paid in USD and have direct deposit in a US bank. i know that i have to pay taxes in USA.
My companys' corporate tax team has said that i cannot work from india for not more than 89 days a year without tax implications to my company. Below is a small write up from our company regarding the same
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Per the India/United States Double Tax Treaty, Article 5, a permanent establishment or taxable presence includes the furnishing of services by a US employee that continues for a period or periods aggregating more than 90 days within any twelve-month period. This means that a XYZ company employee cannot work in India for longer than 90 days in any twelve month period without the risk of XYZ company being deemed to be subject to Indian corporate income tax.
For this reason, we need to limit the time XYZ company employees can work in India.
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Please let me know what options do i have in this scenario and how do you think on I should proceed in this situation.
Also i want to know if my company has to withhold Indian taxes while i am working from India.
I need to be with my parents in india to look after them but at the same time i cannot loose my job since i am the only earner in my family. af firt my company agreed for a 6 months split between India and US but then when they were pointed to this treaty thats when they took it back.
So your advice and help is really appreciated. let me know if you have any questions.
My companys' corporate tax team has said that i cannot work from india for not more than 89 days a year without tax implications to my company. Below is a small write up from our company regarding the same
=============================================================================================================================================================
Per the India/United States Double Tax Treaty, Article 5, a permanent establishment or taxable presence includes the furnishing of services by a US employee that continues for a period or periods aggregating more than 90 days within any twelve-month period. This means that a XYZ company employee cannot work in India for longer than 90 days in any twelve month period without the risk of XYZ company being deemed to be subject to Indian corporate income tax.
For this reason, we need to limit the time XYZ company employees can work in India.
===============================================================================================================================================================
Please let me know what options do i have in this scenario and how do you think on I should proceed in this situation.
Also i want to know if my company has to withhold Indian taxes while i am working from India.
I need to be with my parents in india to look after them but at the same time i cannot loose my job since i am the only earner in my family. af firt my company agreed for a 6 months split between India and US but then when they were pointed to this treaty thats when they took it back.
So your advice and help is really appreciated. let me know if you have any questions.