I and my friend in NJ have planned to start a limited Liability Company in the US. I will be owning a part of the company and am a resident of India. We will be paying taxes in the US. Should I also pay taxes for the money I bring into India? Should i register a company here in India and pay the taxes? I assume there must be someone from India who does this.. if you do pls help me out.. Thanks
I am not from India, but in general, you would pay taxes in two places. First, you would owe taxes here in the USA, because that's were money was generated. Second, your home country will probably want their cut. A good example is pro athletes. For instance, when NBA players went to China to play (they were paid to do so), they had to pay taxes to China, because that's where the money was made. They also had to pay taxes to the USA, because that's where they lived and the money earned in China is income.
You have to look at the tax treaties between India and the US. Some or all of the US taxes might be deductible on your Indian tax forms. Also depending on the kind of company you create it will not be "making" money if the company pays YOU because thats a deductable expense depending on how the company is organized and how dividends are paid to shareholders or disbursements made to officers of the corporation.
Hello Zappy, Well i am Commerce guy i just gave my Second Year examns and in Taxation subject i learned that whenever any income come from outside India then you have to pay taxes ( if you are normal resident of India) So i think you might have to pay taxes if u you want details of this let me know i'll send you copy of my pamplets lol
it depends on sector, in some sectors foreign income is exempted from tax in india, just check in with you ca for the same !
Thanks ! I have confirmed with a CA in India as well as a CPA in US.. seems I have to file my income returns as normal and i will get some credit for the tax paid to US IRS.