Working on contract for UK company from India

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If you're offered a role with a UK company while based in India, you'll likely be working on a contract basis as they have no Indian establishment. This guide clarifies whether contracting or full-time employment is best, the need for business registration and GST in India, applicable taxes, and how to handle invoicing. It also addresses potential UK tax deductions and the process for setting up as a contractor.

Anuj

Anuj (Querist)

15 February 2022 I have an offer to work for a UK company from India. They do not have any Indian establishment so, I will have to work on a contractual basis, I guess?
Q1. What is the best option to import work from UK, work as a contractor? or Full Time Employee?
Q2. If I go contractor route, do I need to register myself as a business and get a GST number?
Q3. What taxes do I need to pay in India?
Q4. Will my employer deduct any taxes in the UK?
Q5. How can I create invoices for hourly rate to charge my employee?

Any help on this will be much appreciated. Many Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 February 2022 1 Full time employee.
2 yes.
3 Income tax payable on the income.
4 No tax will be deducted.
5 Invoice not required in case of employment.

Anuj

Anuj (Querist)

15 February 2022 Thanks a lot Sir for your quick response. I heard, for full time employee there will be lot of legal formalities to be carried out by the UK employer? Where can I find out the process of registering myself as a contractor? Thanks again for your valuable inputs.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 February 2022 It will be contractual emploment. No need for any registration.

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