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Opening LLC in USA as Indian resident
Hi I am Indian Resident and i want to open LLC in USA, also bank account in USA for my LLC. I want to know am i allowed to do that ? There is no tax in USA for Non US resident LLCs. If i earn money and get that money in US account and then transfer that money in my Indian Bank account, at what rate i will charged for tax ? Or I need to tell government regarding my LLC in USA in anyway ?
Asked 8 years ago in Income Tax
One more thing if i create a LLC in US and dont send any money in my US bank account and get all earnings in my indian account, in that case i need to do any leagl formailities ?
Asked 8 years ago
As you are an Indian resident,your global income will be taxed, i.e., income earned in USA also. LLC has a different legal status from you and your income from LLC will be taxed. LLC being a Non-Resident, its income will not be taxed in India. However, if the business has an Indian connection, the Indian income will be taxed. Further you will have to address the issues relating to transfer pricing.
As regards the earnings getting deposited in your Indian account, again the constitution of the business is important. Is it possible to get the LLC's revenues credited in your individual Bank account, unless you open a separate bank account in the name of LLC?
Yes its possible to get revenue directly in my Indian bank account through paypal.com. I am planning on providing online services to people outside India.
Asked 8 years ago
Hi
Please note in the entire transaction, you need to pay income tax in India as income accrued in India is taxable in India only
With the passage of law relating to foreign accounts, you will have to report for income from such transaction and pay the appropriate income tax.
If the money is received directly in Indian Bank Account then it will become income received in India and is taxable at appropriate rate.
Since you are a resident Indian, your global income both from India and abroad is taxable in India.
The income earned in India is taxable. Pl. be sure of the constitution - Individual or LLC when you receive the money and offer it for taxation
In the first case your global income will be taxed based on DTAA. As LLC is having different status the tax will be in US only. Only your income from the same will be taxed.
When you bring that amount in India then the nature of amount should be seen for tax liability.
For third question if the same is brought to indian Bank account then as per our view it is taxable.
That means if i have LLC in USA and my LLC earn income it will be taxed only in USA not India and If brought that income in India , only that income will taxed as mine. am i right ? Is there any money laundring issue ?
Asked 8 years ago
As per our understanding and taxation issues yes you understood it right, need to declare the same in it form to be submitted .
For taking out money from India for investment in business abroad, you may have to seek permission from RBI under FEMA.
For RBI permission you will have to give proposal giving details of cash flows, profits on investment abroad and balance sheets to ascertain viability of the proposal
Income received in India will be taxable in India. When you receive all money in Indian Bank account, that means income will also be deposited in India.
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