Receipt of Professional fees from a Foreign Client

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This discussion clarifies the tax implications for a freelance consultant receiving professional fees from foreign clients. It confirms that such services are considered an export. The fees received in foreign currency are taxable in India, with profits subject to income tax slab rates after deducting expenses. GST registration becomes applicable if the aggregate supply exceeds Rs. 20 lakhs.

Anish Shah

Anish Shah (Querist)
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27 February 2023 Hi, I'm a free lance consultant and provides advisory services to clients in India and abroad.

Please help to clarify below -
1. Will this be considered as an Export of goods and services.
2. What is the income tax liability on a fees received in foreign currency from client based abroad.
i. is it 100% exempt or taxable
3. is GST applicable to this transaction

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 February 2023 1. Yes export of services.
2. It will be taxable in equitant rupees as credited in your Indian bank account.
3. The profits derived after any expenses, will be taxable as per your income tax slab rate.
4. GST registration will be applicable if your aggregate supply cross Rs. 20 lakhs rupees.

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Anish Shah

Anish Shah (Querist)
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27 February 2023 Thank you Sir .. for your kind revert.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 February 2023 You are welcome.

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