Uae salary, work based out of india.is it taxable?

Tax queries 622 views 2 replies

Nik

Officer

25 Points Joined June 2012

Hi,

I have got an offer from a company that is based in UAE .The role I am offered is primarily based out of Mumbai but on UAE payroll ie the salery will be credited into an UAE bank account.

As the job is said to be primarily based out of Mumbai but on UAE payroll, so does that mean that the entire amount will be tax free?I heard something like the employee should spend atleast more than 183 days in UAE so that the salary becomes tax free in India.Please clarify this.Also the UAE firm does not have a legal entity in India.

Also I plan to remit the amount periodically from UAE bank account to my Indian bank's savings account.Any tax implications here?

Kindly advise on the above questions.

Regards,

Nik

Replies (2)

HEMANSHU KAUSHIKKUMAR PANDYA

Chartered Accountant

44 Points Joined December 2009

If you are a Resident in India i.e. your stay in India is 183 days then your global income will be taxable. It is immaterial that ur company does not have any entity here.

Nik

Officer

25 Points Joined June 2012

Thanks Hemanshu,

So doesn't DTTA provide any relief here?

Also if the income is taxable in india, what is the income amount that should be shown?I mean as I need to convert the AED to INR and the currency fluctuates throughout.So how should I go about this?

Also which is the form that should be used here while filing the return in India as the employer would not be giving any form 16 etc...