I was able to find this topic which was similar to the current one (/forum/taxability-of-salary-of-rnor-for-services-rendered-from-indi-40136.asp#.VUHlkWSqqko) but with a few changes :
(i) A design Engineer is NOT Ordinary Resident in India for Income Years 15-16 and 16-17. He is a FULL TIME employee of a company in USA. The employer US company has a presence with/in India. He receives salary in USA from the employer company in USA and pays tax in USA.
(ii) He resides in India and works directly for his US employer by rendering his services over internet, conference calls etc. His work being of such a nature, he need not be physically present in USA to discharge his job duties and he has been permitted by his employer company to stay wherever he likes. He makes short visits to US several times a year.
(iii) Under DTA treaty he is eligible for tax relief in India for tax paid in US on his salary there.
Is the design engineer’s salary, received IN USA during 15-16 and 16-17 for services rendered FROM India over internet etc taxable in India?
