Business related

I am Indian . I am planning to join affiliate program for adult marketing with U.S.A web hosting , server and domain to promote adult related products outside India . My lawyer told me that if I use U.S.A hosting and server for adult marketing and doing business outside India  then Indian law can not be applicable on me because business is running outside India. Now my question is that if I withdraw money earned through that business ,  in India then how will I show my source of income to bank or income tax department. Will it be illegal to make money with them in India if my business is not running in India , and no one in India can visit my site ( Country restricted ) but only I am getting money from that business in India.
Asked 9 days ago in Income Tax from Patna, Bihar
Hi

Please let us know whether you are setting up a company in foreign for the same or just the domain and servers operate in foreign countries and work will be done in your name only. In whose name the bank accounts of the business shall be??
Lakshita Bhandari
CA, Mumbai
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its legal, income tax applicability in INDIA is depends  on residential status of a person , thus as you said you are in INDIA and run business out side INDIA then your worldwide Income is taxable in INDIA however GST is not applicable on above business module.
Lalit Bansal
CA, Delhi
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Hi,

Since you are a resident of India, you will need to pay taxes for your global income in India. Show it as a business income.

Regarda,
Nikhil.
Nikhil Khanna
CA, Mumbai
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Income tax in India depends on the residential status of the person. If the Constitution of business is proprietorship then your stay in India will be considered for residential status irrespective of location of the server.  I am not sure of the legality of the business in india as it is related to marketing of adultery which is legal in UK. If business is legal in India you can do transactions with them and get the money in Indian bank account. 

It will be a business income and you need to file ITR in India.

In case of resident person global income is taxable in India.

Vivek Kumar Arora
CA, Delhi
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Hello Sir,

No matter where ever you do your business, your income will still be taxed in India since you are resident.

Even if the money stays in a US based bank account and is never remitted in India still it will be taxed in India.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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If Indian law is neutral then it is fine to receive income in India without any restrictions.
Vivek Kumar Arora
CA, Delhi
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I dont think any such law applies in India.
Nikhil Khanna
CA, Mumbai
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It's not illegal.

If there's no separate business entity abroad, pay the Indian income tax. Show it as your business income.
Lakshita Bhandari
CA, Mumbai
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Since you are in India so you will be taxed in India for all your income inclusive of global income..
Swati Agrawal
CA, Indore
176 Answers
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Hi,

As you are resident in India, your global income will be taxable in India. 

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.com
Abhishek Dugar
CA, Mumbai
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You don't need to show nature of business. You will just show income from business/profession in ITR 

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.com
Abhishek Dugar
CA, Mumbai
2665 Answers
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