Income tax on retainer or representative of a foreign firm

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S Visweswaran (Querist)
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09 March 2015 Dear Sirs,

I have been appointed as a Retainer or Representative of a foreign company in India.

They will pay me in forex every month and ready to re-imburse my other expenses like Travel, accommodation, local Coveyance, communication and rental charges to my office.

My nature of work to co-ordinate , represent, provide market inputs and consultancy services etc by working with various IT companies (like Infosys, Wipro etc).

Kindly clarify:

1. Do you I have to pay Income Tax ?
2. How the re-imbursements of expenses are treated in the I Tax?
3. What are all the documents required to get this forex remittance every month so that everything is done legally as per the law.
4. Is there any other tax I need to pay?
5. Is service is applicable?
6. Do I have to inform the RBI about the receipt of remittance received through my bankers.

Apologize for the inconvenience caused to CA forum over this question.

I am a law abiding citizen and would like to comply with the Laws of our country.

with regards,

Siva

CA. Brijesh Baranwal

CA. Brijesh Baranwal (Expert)
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10 March 2015 1. Yes,
2. Depends upon the facts, may be not taxable,
3. Full details of receipts and expenses,
4. Advance Tax, Service Tax may be applicable,
5. See point no. 4 above,
6. Prima facie, seems not required.

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