Consultant or Employee


This query is : Resolved 

Quick Summary
A friend is considering whether to work as a software consultant or a permanent employee for a foreign company, with their service location in Pune. The discussion explores which option might offer better tax benefits. One suggestion is that consulting could be more advantageous if total income doesn't exceed 50 lakh rupees, as only 50% might be taxable under section 44ADA, and GST implications are also mentioned.

22 February 2020 Dear All

One of my friends has got an option to either join as software consultant or as employee of a foreign company to optimize tax benefit for my friend.

Wondering which is best option for him especially since his place of employment / service would be Pune .

Thanks

22 February 2020 Consultant will be better option if toal income doesn't exceed 50 lacs. 50% of income is taxable under section 44ADA.

23 February 2020 But sir wouldn't this attract GST as well

24 February 2020 No GST upto 20 lacs.


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