Foreigner income tax

[yujin kim]

Dear respected sir

Our company's owner is Korean, he has business visa for 15 years. he doesn't have citizenship.

His FRO finished 2008. and not renewed for a long time.

We don't have any branch, headquarter, only one company in India.

In this case, are we foreign controlled company or local company?  or both of them? I

For 4-5 years, so many Korean gerneral manager, engineer is came to India, and some people took the registration FRO properly.

But some people didn't take the registration FRO and go back to Korea after 3months, or 1 year. I'm also Korean and got the business visa for 2 years. I don't receive any salary in india, but I have been working here for 2 years. Even I didn't get any money in India, but I pay income tax .

But before lots of Korean worker came to our company for working, he didn't pay income tax and sometimes didn't take the FRO registration neither. (all people didn't get salary from India, get from Korea)

In this case, is it any problem if income tax audit is started? Better do we have to put all salay amount for before workers in our balance sheet as a salary payable amount and pay income tax right now??

AI Summary

Exit visa requirement: foreign employees must secure exit visa and produce tax and TDS records when leaving India.
Foreign nationals with expired visas must obtain an Exit Visa from the local FRRO before departure; exit applications require up-to-date tax documentation, including TDS statements, PAN copies, proof of residence, employment contracts and identity documents. Employment-visa issuance and renewal are conditioned on meeting remuneration and visa rules, and failure to comply may cause visa rejection and immigration complications. Maintain complete tax filings for all years up to the previous financial year to reduce exposure in potential income-tax audits regarding undocumented salary payments or unregistered foreign workers.