How tax will be calculated if i am working from India for Japanese company

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If you're working remotely from India for a Japanese company, your salary will likely be taxed in both India and Japan. However, you can claim double taxation relief in India. It's recommended to have your salary deposited into an Indian bank account. GST is generally not applicable as it falls under export of services, provided you register and submit a Letter of Undertaking (LUT).

Rajesh Lohiya

Rajesh Lohiya (Querist)

17 April 2024 Hello Team,
I got an offer from JAPAN company. Where i suppose to work from India with intermittent visits to JAPAN for 2-3 weeks.
I would need your assisnace on tax part. My queries are as follows

1) Where should i ask them to deposite my salary
a) Indian Bank Account
b) International bank Account
c) JAPAN bank Account
2) If salary is created in Indian Bank Acc
a) Do i need to pay tax in JAPAN?
b) Do i need to pay tax in india?
c) Both?
d) do i need to pay GST in india?
3) If salary is created in International bank Account/ JAPAN bank account
a) Do i need to pay tax in JAPAN?
b) Do i need to pay tax in india?
c) Both?
d) do i need to pay GST in india?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 April 2024 1) a) Indian Bank account.
2) c) both with a relief of double taxation benefits claim in India.
d) No, it will fall under export of service.
Register under GST and submit LUT no GST payable.
3 c) both with double taxation relief.
d) No GST.

Rajesh Lohiya

Rajesh Lohiya (Querist)

18 April 2024 Thank you sir for your guidance

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 April 2024 please check whether the salary being paid to you is actually shown as salary or not by your employer. Are they deducting any payroll tax in Japan on it. Often, employers pay their foreign employees in form of professional fee. In such a case, there wont be any tax compliance required in Japan. Rest of the compliances will be as suggested by Seetharaman ji above.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 April 2024 You are welcome..
...

Rajesh Lohiya

Rajesh Lohiya (Querist)

19 April 2024 Thank You, Nikhil. i will check

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 April 2024 you are welcome Rajesh bhai. If you need any assistance, feel free to message/text here.

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