Worked from home in Indian subsidiary of US Co. didnt clear my dues

I was employed by the Indian subsidiary (setup in hyderabad) of a US based company. I worked from home. They never paid me and after some months I refused to do more work until dues are cleared (which is another question I posted on lawrato). Questions - 1. I think they never registered me as an employee with labour department. Is the employer required to register its employees? 2. Eventually I agreed to be paid via wire transfer (without TDS etc). They registered me as a freelancer in their US branch. Did that end my employment with the Indian branch? There were no official resignation or termination letters. 3. Since I told them that I will not do any further work until past dues are cleared, they claim that me stopping the work caused losses to company. Am I liable to any losses caused by this? 4.They claim that I did only 3% of work and they refuse to pay more than 3% of past dues. Can they claim such a thing after many months of work when I talked to them daily?