Tax liability for consultancy services to a foreign company
This query is : Resolved
30 August 2012
I am a salaried Indian individual working in a private limited company in Chennai.
I regularly pay income tax and file appropriate returns.
In FY 2012-13, I would like to provide information technology consultancy services in individual capacity to a Canadian company having no branches in India or direct operations in India.
The Canadian company plans to pay to me in USD for the technical consultancy which will be provided over email.
The USD payment is planned to be sent to my Savings Bank account in India through electronic wire transfer.
The income will not be regular and may not exceed 2 lakhs per financial year. I am currently in 20% tax slab.
In this regard I would like to clarify if the above income will come under the purview of Income Tax in India?
How should this income be treated as per income tax rules prevalent in India.
Regards
S.Raghavendran
I regularly pay income tax and file appropriate returns.
In FY 2012-13, I would like to provide information technology consultancy services in individual capacity to a Canadian company having no branches in India or direct operations in India.
The Canadian company plans to pay to me in USD for the technical consultancy which will be provided over email.
The USD payment is planned to be sent to my Savings Bank account in India through electronic wire transfer.
The income will not be regular and may not exceed 2 lakhs per financial year. I am currently in 20% tax slab.
In this regard I would like to clarify if the above income will come under the purview of Income Tax in India?
How should this income be treated as per income tax rules prevalent in India.
Regards
S.Raghavendran
31 August 2012
Income will be taxable.
31 August 2012
Thanks Arihant,
Can you tell me how this income should be treated? Should I show the income under "Income from other sources" while filing ITR-1 next year? or should I pay any advance tax? or use a different form to file this income?
Can you tell me how this income should be treated? Should I show the income under "Income from other sources" while filing ITR-1 next year? or should I pay any advance tax? or use a different form to file this income?
31 August 2012
ITR 4 - Professional income seems apt.
Message likes :
1 times
01 September 2012
Arihanth, Should I file both ITR-1 and ITR-4 next year since I am also employed in a private limited company? Should I pay advance tax on the income? Can I claim any exemptions on the income earned? Will FEMA apply?
01 September 2012
you should file ITR 4 only and give the detail of your both sources of income in respective place.
If you incurred any expenditure for providing these services then claim the expenditure against that income.
If you incurred any expenditure for providing these services then claim the expenditure against that income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
