income from business in uae

Tax queries 248 views 2 replies
if i am a resident in india. I am also a share holder of a uae company and i am getting my share of profit from uae company in india. what is the taxability of that.

if it is taxable can i avoid that ? how?
Replies (2)

If you are a resident of India, your global income will be taxed in India whether it is earned in India or outside India subject to DTAA(Double Taxation Avoidance Agreement) with the foreign countries. 

The Board in its Circular No. 728, dated 30th October 1995 have already clarified that in case of remittance to a country with which a Double Taxation Avoidance Agreement is in force, tax should be deducted at the rates provided in the Finance Act of the relevant year or at the rates provided in the DTAA, whichever is more beneficial to the assessee.

Originally posted by : Dhirajlal Rambhia
If you are a resident of India, your global income will be taxed in India whether it is earned in India or outside India subject to DTAA(Double Taxation Avoidance Agreement) with the foreign countries. 

The Board in its Circular No. 728, dated 30th October 1995 have already clarified that in case of remittance to a country with which a Double Taxation Avoidance Agreement is in force, tax should be deducted at the rates provided in the Finance Act of the relevant year or at the rates provided in the DTAA, whichever is more beneficial to the assessee.

This is absolutely correct. I am UAE resident here and there is no incometax or other tax for businesses on income earned or profits gained so questioner has to file return with income from UAE as income from outside india. He must maintain an account saparately where he must solely credit monies earned outside India. 

The attached agreement is DTAA between India and UAE circa 1993. There may be slight changes which i am not aware of. Though one thing is sure that in UAE there is no tax on salary income or business income. I do not try to avoid tax but try to minimise as much within available exemptions and setsoffs within the IT act. 

 

 


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