International taxation

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Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2014 Can any India resident become partner in UAE based LLP? What will be the i tax on UAE profit? If the indian bring his money standing in his capital account (capital + earned profit in UAE) in india- taxation theirof?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 September 2014 1. Yes he can be a partner in UAE based entity

2. if the tax status is resident, then whole of the income shall be taxable in India

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Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2014 but in the reply no 2 I would like to draw your kind attention towards the fact that as per DTAA between India and UAE the business profit will be taxed as per the law of the country of business. IN UAE business income other than oil and banking is tax free. What will be the taxation in the light of these facts?

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 September 2014 my answer regarding taxability of overall income remains same. What you need to do is to claim exemption under the DTAA at the time of filing of the return.

For eg, lets say total income is Rs 100 (including Rs 50 from UAE profits)

So you will offer Rs 100 as income but Rs 50 will be offered under DTAA at ZERO tax rate.

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2014 Thanks a Lot for the lucid reply.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 September 2014 you are most welcome friend..