I am returning to mumbai from US after working for over 2 year in month of June, and I will be still working with my US company.
Company have provided me two options
1) Join their sister company in india as a contractor and recieve payment in INR.
2) Join US company as offshore contractor and recieve payment in USD/INR.
Can you please suggest which is best option in this situation?
Any how you will be staying in India only in any option
As a contractor please incorporate one company in india & export your services to USA & receive amount in USD
So please consider the option 2 & receive the contractor fees in USD as it will have benefits for you rather than option 1
In both the cases, you can claim expenses as per income tax act but if you are registered as a offshore contractor, you will have benefit in service tax act since it will be export of services & many other benefits will be available. Please consider various laws not only income tax act.
Thanks for taking time to explaining in detail.
CAclubindia
