Q.803 OCI working for Foreign

Company in India - May be Tax

Exempt

Question: I am an Australian citizen and have OCI. I am working in India to check out prospects of expanding our companies markets to also cover Indian market in future. My company in Australia is paying for this work. Am I taxable in India? Where can I get more information? Will appreciate speedy response Cheers! R Sullivan Answer: The renumeration for your services in India may be tax exempt in India. Salary received by a person who is not a citizen of India from a foreign company for services that are performed in India by such a person for a foreign company can be exempt from tax in India under section10(6)(vi) of the Indian Income Tax Act if certain conditions are met. Conditions such as: 1. Such an employee’s stay in India should not exceed 90 days 2. Foreign company must not be already engaged in any business or trade activity in India An excerpt of the rule is provided below for clarification: 10(6)(vi), the remuneration received by a foreign national as an employee of a foreign enterprise for services rendered by him during his stay in India is exempt from tax, provided the following conditions are fulfilled— (a) the foreign enterprise is not engaged in any trade or business in India ; (b) his stay in India does not exceed in the aggregate a period of 90 days in such year ; and (c) such remuneration is not liable to be deducted from the income of the employer. As per section 10(6)(viii), any salaries received by or due to a non-resident foreign national for services rendered in connection with his employment on a foreign ship where his total stay in India does not exceed in the aggregate a period of 90 days in the year is exempt from tax. For more information contact the Indian taxation department or a qualified accountant.