Consulting for my former US employer from India — navigating RNOR, GST, and FEMA
Left the US in early 2026 after several years on a work visa (no GC or citizenship). Moving back to India in mid-July. Less than 31 days in the US this calendar year so SPT doesn't even trigger. Based on my India travel history, I qualify for RNOR for 3 years (FY 2026-27 through 2028-29), becoming ROR from FY 2029-30.
Planning to consult independently for my former US employer. Work done from India, paid in USD to my personal US bank account. Will file W-8BEN with them, so no US withholding since services are performed outside the US.
The questions I'm trying to figure out:
India income tax during RNOR — is consulting income taxable? Payment isn't received in India but the work is physically done from India. Not sure how RNOR interacts with this — does the source of payment matter, or where the work is done? Also wondering if the India-US tax treaty has any bearing here.
GST & FEMA — assuming this qualifies as export of services, what does compliance actually look like? And with payment going to a US account, are there repatriation obligations I need to worry about as an RNOR individual?
Anyone who's navigated this specific situation — consulting for a US company from India as an RNOR — would love to hear how you structured it.