I am a permanent resident (Green Card holder) of USA and traveled to India in March and because of COVID-19, I was unable to travel back to USA. I have been working from India for my US employer since March. I understand that I might be required to file income taxes in India because I have stayed for more than 182 days in India unless an exemption circular comes out from Govt. of India. I am okay paying my personal income tax if such a circular does not come out. But, would my employer be required to file any corporate taxes as well because they have an employee (me) working from India. My employer already has an office in India but it is a separate division and I am not attached to that division/office in India at all. Thank You.
Hi,
Depending upon the nature of your roles and responsibilities, your employer might face larger issues in India (i.e. permanant establishment risk).
Permanent Establishment ('PE') risk is elevated if you are performing any sales function in India.
We may discuss the issues in detail over phone consultation.
Dear Sir,
Hope you are doing well !!
As per my understanding, there would be no tax liabilities on your employer subject to PE risk.
We can discuss the same over call. We may assist you for the same.
- I am assuming your residential status in F.Y. 2020-21 will be resident but not ordinary resident. In case of salary income, place of accrual of salary is the place where services are rendered. Also assuming you will receive the salary in the USA bank account. Use concept of shadow payroll for compliances.
No your employer will not be required to file any corporate taxes in India.
This can be treated as PE in India but the whole thing would work if your employer is getting any income from the work you are doing in India.
For eg: If your division gets an order from India then in that case since you are in India there can be a chance of your employer being liable for tax in India otherwise not.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
As per my understanding they won't required to file any corporate tax just because they have an employee working from India.
