How will the income from remote job be treated in india?

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Jatin Jain (Querist)

15 August 2019 Hello Sir,

I've been recently offered a Job by USA based company. The work mode is remote, so I'll be working from India and I have always stayed in India.
I wanted to understand the income tax and GST going to be levied on my income if I take up the Job offer on the basis of below details:
1. It is a full time remote job
2. Work location will be India
3. It is a contract employment and I have been given a hire letter mentioning the terms
4. Payment will come in the bank account in India as an inward remittance
5. Payment will be processed as per the payroll cycle of the company

Note - TDS will not be deducted by the foreign employer.

Ques 1 - Will the above income be treated as Salary or Business income?
Ques 2 - Is GST registration required for above income?

Could you please clarify as this affects my take home salary? Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 August 2019 1 The above income be treated as Salary as it's a remote job and contract employment. Income taxable in India.
2 GST registration is not required as it's employment.

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Jatin Jain

Jatin Jain (Querist)

18 August 2019 Thank you Sir!
Is there any document or act that I can refer to for the same? It would be helpful to keep such document as a reference.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 August 2019 Refer schedule III of CGST Act

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