Moving Back to India: How to Handle Remote Work for a Non-Registered Overseas Company?

Hi All, I am planning to move back to India, and my current employer wants to retain me by allowing me to work from India remotely. Can someone advise on the following questions?

Working in India for a Non-Registered Company

1. How can I continue working in India if the company is not registered in India?

Taxation Implications

2. What will be the taxation implications in this kind of arrangement?

Consultant Registration Requirements

3. Do I have to register somewhere if I work as a consultant in India?

GST Filing Requirements

4. Do I have to file for GST?

I have another offer from a company that is registered in Singapore but not in India. They have provided me with a contract stating the start date, no end date, and other terms and conditions. Since the company is not registered in India, they will not be deducting TDS from the salary, and I will have to file my own taxes. I am curious about how the company will be able to transfer the salary into my Indian bank account if it is not registered in India. Additionally, do I need to file for GST for this work arrangement?

Thank you

Working Remotely for an Overseas Company in India

When working remotely for a company that is not registered in India, several considerations come into play, including taxation, legal compliance, and financial transactions. Here are practical steps to address your queries:

1. Working for a Non-Registered Company in India:
- In India, there is no specific requirement for a foreign company to be registered to engage an individual for remote work. However, you should ensure compliance with Indian tax laws and regulations.
- As an individual working remotely, you may fall under the category of a consultant or freelancer. It's essential to clarify your employment status with the company to determine the nature of your engagement.

2. Taxation Implications:
- Since the company is not deducting TDS (Tax Deducted at Source), you will be responsible for fulfilling your tax obligations in India. Ensure you maintain accurate records of your income and expenses for tax filing purposes.
- Consult with a tax advisor or accountant to understand the tax implications of receiving income from a foreign company while residing in India. They can guide you on tax compliance and any potential double taxation issues.

3. Registration Requirements:
- If you are working as a consultant in India, you may need to register for Goods and Services Tax (GST) if your annual turnover exceeds the prescribed threshold. Verify the GST registration requirements based on your income and services provided.

4. Salary Transfer and Financial Transactions:
- To receive your salary in your Indian bank account from a foreign company, you can use international wire transfers or online payment platforms. Ensure you provide accurate banking details to facilitate smooth transactions.
- Be mindful of currency conversion rates and any associated transfer fees when receiving payments in a different currency.

In conclusion, while working remotely for an overseas company in India is feasible, it's crucial to adhere to tax regulations, clarify your employment status, and maintain financial transparency. Seek professional advice to navigate the complexities of cross-border employment arrangements effectively.