Working from India for an US company

[jonnysing]

Hello
I am currently working in US for a US company on H1B visa. I will soon go back to India for good. My US company offered me a position to work from India remotely. This company does not have a branch in India, so all my paper work and payroll related activities will remain with the US office itself.
My question is, can I continue working with this company from India? Is this legally correct? Again since I am on H1B, my company told me I don't need to pay taxes in US. Can I pay my taxes in India with the W2 I receive from this company?

Thanks
Jonny

[shervin143]

My question is, can I continue working with this company from India?
>>> Yes.

Is this legally correct?
>>> Yes. There is nothing illegal about it.

Again since I am on H1B, my company told me I don't need to pay taxes in US. Can I pay my taxes in India with the W2 I receive from this company?
>>> That is not correct. You will end up paying taxes in U.S as well in India. If you get a W2 in U.S, you need to pay tax and file returns on that W2. Consult a good financial advisor.

Btw, once you leave U.S, you will no longer be in H1B status.

[wewy]

My question is, can I continue working with this company from India?
>>> Yes.

Is this legally correct?
>>> Yes. There is nothing illegal about it.

Again since I am on H1B, my company told me I don't need to pay taxes in US. Can I pay my taxes in India with the W2 I receive from this company?
>>> That is not correct. You will end up paying taxes in U.S as well in India. If you get a W2 in U.S, you need to pay tax and file returns on that W2. Consult a good financial advisor.

Btw, once you leave U.S, you will no longer be in H1B status.

Can you pls clarify..on what basis would someone pay taxes in India where there is no proof of income earned and the company does not exist in India?

[raghvi]

Working from India for an US company

The tax treaties usually contain a specific provision declaring that such income should normally be taxed in the employees' country of residence, but the same may become taxable in India, if the employee stays in India for more than 183 days in a fiscal year.

However, in order to claim exemption from tax in India, the following conditions should be satisfied:

1. The total duration of employee's stay (in aggregate) in India does not exceed 183 days in a tax year (April 1 to March 31);
2. The remuneration for services rendered by the employee is paid by, or on behalf of, an employer who is not a resident of India; and
3. The remuneration is not borne by a permanent establishment or fixed base, which the employer has in India.

Look at it this way , you are using infrastructure in India to work , the water, electricity, roads etc, hence tax needs to be paid in India. If still in doubt consult a tax expert.

[wewy]

Thank you for the information.It's good to know.