I am an Indian resident and owner of company. A UAE resident, holds a forex trading account in his name and has approached me to provide him advisory serviced for forex trading . He will be paying me commission (fixed + performance based). I wish to receive the commission to India in a fully legal and compliant manner and am prepared to pay any applicable taxes in India.
Please advise on the correct and compliant mechanisms to repatriate these funds to my company account (for recognition as business/ profession income), including:
* The legal basis for remittance of commission paid as professional/service income,
* Regulatory compliance required under FEMA/other RBI rules.
* Tax consequences in India (income characterization, TDS, etc).
* Any documentation or agreements needed (professional services agreement, invoices, KYC, bank declarations).
* Reporting and disclosure requirements for the company (income tax returns, transfer pricing, RBI reporting, Form 15CA/15CB if applicable).
* Any additional steps to avoid unintended tax or regulatory complications.
I would appreciate an outline of the preferred options, associated tax/regulatory implications, and a checklist of documents I should prepare.
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Repatriation of income from Forex Trading advisory/ consulting services from UAE to India