I am a doctor by profession. I have a regular job in India and has been receiving professional fees so far. I have been paying income tax under section 44 ADA so far. TDS used to be collected under section 194J ! I am an Indian resident and will continue to remain so. The firm i work for are all Indians (as far as i know). Their MD is a doctor himself. He is an Indian, a resident Indian and is paying tax in India.
Now the firm i work for has establishments abroad . They run hospitals in Gulf. I don't know much about their company specifics-ie i don't know whether they have a company registered in Gulf or is it the same Indian company.
I now has a job offer. They have offered me an additional job(as a doctor itself) to work for 1 week every month in Gulf (Dubai). Rest of the days i will be working here in India, back at my already existing job.
I will be receiving additional money for this work in dollars. This is where i have a lot of queries. Obviously i will still remain a resident Indian. My queries are:
1)Can i receive the remuneration into my already existing bank account in India.? They said payment will be in dollars. But i have no idea as to the source from which the money arrives-whether from an Indian company or a company based in Gulf. As i will be receiving money in dollars, i presume it has to be from a Company based in Gulf !!!
2)For this money, i have to pay tax in India, me being a Indian resident. But will it be counted as professional income. ? Will it come under section 44 ADA? If the employer is based on Gulf, i guess there will be no TDS and no 194J entry-right? Can i therefore show it as "income from other sources" if i so wish (ie once my total professional receipts cross rs.50 lakh, can i show the remaining amount as "income from other sources"-especially since there is no records to prove or disprove whether its a professional fees-because the money is from a foreign employer)
3)A group of anesthetists in my region have entered into a business of providing anesthetists and critical care specialist (on demand) to nearby hospitals. They themselves are these specialists and they themselves are the stakeholders of this entity. They are running it like a business entity is what i understand-i presume they pay income tax @ 8% rate and are sharing the profits!
Now another of my colleague has also been offered the same job that i have been offered by my employer. Can we also form some sort of business entity (the business of supplying doctors as needed to the employers) so as to save on income tax ? Would such an entity actually save on our tax liability-please explain?
I am naive on the business field-if anybody can give good advice, it would help us a lot.
Might i add....if i have to show my entire income as professional fees (from India and abroad), i would loose the benefit of 44 ADA (because it would cross the rs.50 lakh limit).....and i would not have much to gain from the additional work!
CAclubindia
