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First of all, you are NOT supposed to work on a business visa.聽 This visa type is only to attend meetings, conferences etc.聽 If you want to work, they should give you a work visa / Iqama.聽 聽If you are caught during a labor inspection working on a business visa, the consequences are severe.聽 Companies do this as they may not have a quota for work visas and hence take short cuts.

Similarly, whatever you will be paid is NOT salary but fees for services in legal terms and ideally the Saudi company should deduct withholding tax on it, at a rate of 15% if they want to follow the law.

I have no idea about India but if the tax law is as per the British systems, it is based on residency in the country i.e. you have to be outside the country for certain days in a year to be eligible.聽 I would think it would be difficult to prove as your salary is going to your Indian bank account plus you don't have legal residency for Saudi - it could be seen as someone who is working abroad but a resident of India (if they audit).