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Possibility of working remotely from Muscat

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Gayathri Sujaya Babu

23 Points Posted on 30 January 2023

Hi, I am currently for an Indian company and planning to move to Muscat on family visa. Our company has en entity in Dubai. I would like to know if I can remotely work for the Indian company from Muscat and get paid from Dubai without breaking the employment record in India, what will be the tax implications? Kindly advise.

Replies (2)

Quick Summary

This discussion explores the feasibility of working remotely from Muscat for an Indian company while being paid via a Dubai entity. It covers whether such an arrangement is permissible based on employment agreements and discusses potential tax implications, particularly concerning Indian income tax laws and residential status. The advice suggests that if you are deemed a non-resident for tax purposes and receive payment in a foreign bank account, your salary may not be taxable in India, provided services are rendered outside India.

CA Sorav Gupta

Chartered Accountant

328 Points Posted on 31 January 2023

Hi Gayathri

First of all congratulations on moving abroad!

1. Whether you can work remotely from Muscat solely depends on your employment agreement and the discretion of your employer. If your employment agreement or employer permits you then you can work remotely.

2. As far as your taxation query is concerned, whether income will be taxable in India or not depends on your residential status & DTAA with the foreign countries.

If you are a non-resident as per the Income Tax act, 1961 then the salary will not be taxed in India because services are neither rendered in India nor income received in India provided you take the payment in your foreign bank account.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
ACA. Sorav Gupta
(Practicing Chartered Accountant)

Gayathri Sujaya Babu

23 Points Posted on 31 January 2023

Thank you Sourav. So does that mean that I can continue my EPF and will I be eligible for the gratuity during the period I work from Muscat? Residential status will be Non resident.