Foreign assignment in India

your office will be treated as branch office of foreign company. You are right it cannot be run as liason office. 

FEMA provisions shall apply. Income tax act applies. 

Dear Sir, I meant can i not work as a freelance representative of the foreign company, without any registered office and pay taxes for my income which will come in from abroad but in Indian rupees.

Dear anish

You said you will be working on behalf of the company. You will be marketing their products. This simply means the F.CO has opened a BO in India. You are employee.

Now take a second case. Where you buy their product market it on your own and not on behalf of the company then it is ok. But you are not doing this.

Therefore your resi-cum office shall be treated as BO. Do remember FEMA provisions do applicable. You can let out any of your immovable property to NR without permission from RBI.

I am just advising on the basis of the work which you will be doing for the company.

Thanks

Dear Sir,

in the second case , i am actually not buying anything from the company, am simply marketing their products, the dealers who i will be marketing to will buy directly from the company. the monthly money transfer they will be doing they will show it as commission for sales / sales promotion in their books. my worry is if that would affect me here, as in will my bank ask me for the source of funds and if i have it come into my NRI account , will it be a problem. i dont mind filing returns and paying tax, but how do i show it as my income. alternatively should i take a proprietory license here and have the money transferred into that company account.

Anish

That's what i am trying to say. Since you won't be buying their product you will be marketing it. You will be conductin business on behalf of the company. You are not independent. 

This company has to go through the route of FEMA.

In any case your commission income is taxable in India.

Thanks