Income Tax on my Foreign Income being Generated in my Foreign owned company. I am resident Indian.

Since you are a resident your universal income will be taxable in India, whether or not you receive it here. Therefore as soon as your company earns profit and your share is decided that income will be taxable in India. Also keep the management in the hands of the local otherwise the income of such company can also get taxable in India.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

- In your hands as an resident individual, tax will be applicable when you receive either remuneration/salary from the foreign co. or dividend or interest or payment of any other nature. 

- For foreign co., indian tax will be applicable on indian income only if the residential status of the company is non- resident otherwise global income would be applicable. Residential status will be determined on the basis of place of effective management.

Hi,

Assuming place of effective management ('POEM')c are satisfied, the income earned by Qatar companies will be taxable in your hands only when you receive that income.

Further, if at the time of receiving of such income, you become NRI and receive that income outside India, then you will not be taxed in that income in India.

Qatar does not levy personal income taxes on employee earnings. Partnerships consisting of individuals, as well as individuals carrying on business as professionals or sole traders, are taxed on net business income at the corporate income tax rate of 10%.

The company may be separately taxed.  The standard corporate rate of tax in Qatar is 10%. 

In India, individual income is taxable based on his tax residential status in India.  If you are ordinarily resident in India your income from Qatar will also be taxed in India.  The residential status is depending on the physical presence in India during the period April – March of the FY. 

When a person goes abroad for work he would be resident if he stays in India for more than 182 days in India and 365 days in past 4 years.  This is only applicable to the year in which the person departs.  So if you have not spent more than 182 in India during the year of departure you are non-resident and only Indian sourced income is taxed in India. To determine whether you are ordinary resident or not we need to see your presence for last 10 years.

It is better to draw salary from one company and professional fees from another company. You need to evaluate the options between Inidan salary and qatar professional fees or qatar salary or indian professional fees.

I wont advice to show salary from 2 places as one can't work at 2 places full time.

Hello,

Since you are a resident Indian, your global income would be taxable in India. Whatever you draw from your Qatar based company would be taxable in India, salary, director's fees, dividend.

Your Qatar based company would be taxable in India only on income derived from India since it would be considered a Non-Resident.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Won't be advisable to draw salary from two companies. Look for other remunerations, director's fees, dividend, etc.

Hi

Since you are Resident Indian,your Global Income will be taxable in India.Whatever profit share ,you will receive from Qatar company,will be taxable in your hands.

Its not advisable to declare salary from two company,as you cannot be employee at two places same time.Rather it can be shown as Professional fees.

Hope it helps

Dear Sir,

Hope you are doing well !!

The tax will be payable only when you receive the profits.

Its not illegal to work for two employers simultaneously unless there are employment contracts binding an employee to do so. 

Hi,

I would advise you to take director remuneration from Qatar company instead of salary.

It's optically wiered to earn salary from 2 employers parallelly.