Income earned by a business abroad.

I am Planning to Setup a Trading company in Jebel ali,Dubai (Free Zone) and i would be importing material from U.S and Exporting it to my friends or my dad's company in India.

I am an Indian Citizen and i want to know that would my income earned in Dubai will be taxable in India?

And what if i want to transfer this Income to my friend or My dad in India,than what would be the procedure and taxes applicable.

 

Thanks & Regards

Deepesh

Replies (1)

Dear Sir,

Taxability in India depends upon the residential status of the assesee. So if assesee is a Resident then his global income is taxable in India.

Since u said u will be setting up a company( I suppose similar to one set up under Companies Act) in Dubai, so for Income tax purposes what is material is the status of that company which is different from urs status for Income Tax purposes..

Further, India has a Double Taxation Avoidance Agreement wherein Income which could have been charged to tax in two counties is actually taxed in one country.

So all those facts needs to be examined before making any statement and I understand that it is not possible to state entire facts here..

Pls take a proper advise before taking any decision.

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