Implications of Service Fee received in Tether (USDt) from foreign Client.

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This discussion clarifies the tax and GST implications for UK IT service providers receiving payment in Tether (USDt) from foreign clients. It confirms that such income is treated as a foreign exchange earning, potentially exempt from GST as an export of service. You'll need to report it as foreign currency income in your financial statements and comply with income tax regulations.

Sudipta Das

Sudipta Das (Querist)

16 September 2021 Please guide me regarding Tax implications of Service Fee received by a IT service provider to a foreign client as service fess received in Tether (USDt) via wazirX.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2021 It will fall under export of service exempt from GST on registration under GST and furnishing letter of undertaking in GST portal.
Income tax applicable including the income with local income.

Sudipta Das

Sudipta Das (Querist)

16 September 2021 Do I have to report it as foreign exchange earning in Balance Sheet & Directors Report. Also is their any special compliance as the payment is being done in Crypto i.e Tether (USDt).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 September 2021 Yes, report it as foreign currency earning.

Sudipta Das

Sudipta Das (Querist)

17 September 2021 Thankx for your guidance.

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