Payroll/Taxes - R2I and still employed by US Company

[s_m]

Hello,
I would like to apologize if my query below has already been answered previously. If so could you kindly provide the link to the previous thread.

Background:
I have been working in the US for the last ten years on an H1-B visa (F1 visa before that).
GC was filed in Dec 2006 under the EB-3 category so that is still probably 5-6 years away.

I am working for an US corporation headquartered in Boston,MA. They have no legal entity or presence in India. They do have a big presence in the rest of Asia and their regional headquarters are based in Singapore .

Their current involvement in India just involves using a 3rd party company (Genpact) to outsource workforce for payroll .

I plan to R2I before the end of this year and my company is entertaining the idea of me working for them from India based on an adjusted salary. They do not have plans to create a legal entity in India in the near future.

Job Profile:

It is similar to Supply Chain Consultant role within the Marketing arm of the company which can be done remotely. I plan to either do this from a home office or rent some office space. I will reside in India for the majority of the year with the exception of work related trips as needs (probably 50 days a year).


The options we are looking are:

1. If I was to remain an employee of the parent corporation, how could they compensate me without having a legal presence in the country.

a. Could they pay me in USD or would they have to pay me in INR?
b. Could they continue to pay me as they pay me today? As if I was in the US and I would file personal income taxes both in India and the US?
c. What are the tax implications for the company? Currently they withhold taxes (Federal,State, Social Security,Medicare) from my paycheck in the US?.would they continue to do the same?
d. Would the company need to withhold any Indian taxes as well?
d. Their concern is how the Indian personal incomes taxes would work. Would the company be liable in any way in case I do not pay my taxes in India


2. Making me a contractor to the parent corporation or via a 3rd party Indian company

a. What would be the company?s tax liability with regards to taxes in India?
b. Other than the contractor being personally liable to pay Income taxes in india would the company be undertaking any liability?



Thanks for your advice and time!