Question about control and management of usa company

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Kunalsingh Deshmukh (Querist)
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13 May 2018 Hello,
I am thinking of registering an LLC in USA. My CA has said me that the control and mangement issue comes if you operate a company registered in USA from India. Let me explain my business model first before the question.
My USA registered company will earn as follows
1) Through ecommerce website - I will sell physical products like tshirts, accessories which are supplied form China and USA and not India at all. And all the customers will be from USA, UK, Europe. None of the customers will be from India.
2) Through Affiliate marketing - I will sell other people's digital products like ebooks, softwares etc from affiliate networks like clickbank and Jvzoo or warriorplus. These customers can be of India as well as any countries all over the world.
3) My own digital products - I will create digital products like ebooks, memberships etc, and sell them through clickbank and jvzoo as a vendor. For these also the customers can be anywhere in the world.
All the above will be done from the USA registered company. I will be the sole owner of the company. My CA said that as a proprietor I cannot give myself salary every month. So, whatever income will come from this company I will get the profit share. Now, how will I get taxed for the profit I earn from the USA company in India. My CA does not know this as he said that you need an international taxation expert for that.
Does anyone here know answer to my question. Also will I require to get a GST numbers myself in India for this income.
Also in one of the posts in the forum, it is said that for a foreign company whose turnover is below 50 cr does not have a liability to pay tax in India. Please confirm this as well. I would highly appreciate if anyone would answer this as my company registration is stuck because of this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2018 As per US tax laws LLC is not taxed as separate entity. The income of LLC is taxed in the hands of members. As you are a single member of LLC the entire income of LLC will be taxed in your hands in India in view of you are resident of India, relief can be claimed on tax on the income paid in USA(DTAA relief).
GST registration and payment is required for E commerce portal selling goods in India.
Your entity will not fall under foreign company. It is only a limited liability firm.

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Kunalsingh Deshmukh

Kunalsingh Deshmukh (Querist)
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14 May 2018 Thank you for the reply. If I register an incorporated company then what will be the scenario. Also, all my customers will be out of India for Ecommerce portal if I incorporate and inc instead of LLC. Do I have to register for GST then. Also what will be the scenario of Income tax then.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2018 If all of your customers are out side India GST registration is not required in case of company incorporated out side India.
Companies with turnover of Rs 50 crore or less in a financial year will be exempt from the POEM provisions. Your company will be taxed in US.

Kunalsingh Deshmukh

Kunalsingh Deshmukh (Querist)
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14 May 2018 Thank you for the reply. Also when I get the profit share of the incorporated company registered in USA in India. What will be the tax that I have to pay for that income. As that income would be my profit share from the company registered in USA.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2018 Dividend received from foreign company will be included in the total income of the tax payer and will be charged to tax at the rates applicable to the taxpayer.

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