Visa Transfer and Taxes - legal
I am an American working for a Dubai based firm. I came to Mumbai to begin working with our team here in December of 2015 on a business visa. I have since then spent most of the past 8 months in India, with a number of trips back and forth between here and Dubai. In FY16, I spent less than 182 days inside of India, and thus was not a tax resident during that fiscal year. My company is now looking to hire me locally (in India) on an employment visa and are concerned that misuse of a business visa will cause issues and could potentially result in the firm being fined. Can you please advise me on this and let me know the best way to resolve any conflicts here?
It is my understanding, that because I was in the country for only about 80 days in FY16, no taxes are due on my behalf during that year. While I was working for our India office, I was being paid out of Dubai to my bank account in Dubai -- for these months I was working on a specific project, which is in line with the guidelines of a business visa.
For FY17, I have not yet paid any taxes. If I were to transition now to a permanent employment visa, I may owe taxes (not declared) for April through June, though I believe I should be able to pay these (perhaps with the addition of a fee) at the end of the fiscal year.
Please let me know your advice here or if there are any further clarifications. My goal is to properly move to an employment visa in India without causing any issues. My firm's concern is that in applying for an employment visa, it may also mean disclosing the use of the business visa over the past 8 months. Thank you for your help.