Consultant working in india for us company

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Sachin

Self

24 Points Posted on 25 June 2012

I am an independent consultant working from India (Bangalore) to a US based company, I get the fee transferred to my account in US dollars, do I have to pay service tax, what all formalities are required, do I need to register with Service tax, do I need to file return, please help?

Also if I don’t need to pay service tax, can I deduct my cost of car depreciation/petrol bills and rent for my home office from total income to derive my taxable income tax?

Replies (2)

NBay

Manager

25 Points Posted on 27 June 2012

Sachin,

One thing i sure of is that you dont have to pay serive tax because you are providing service offshore. Actually, i am also moving into similar structure soon, so wanted to know more about this independent consultant thing. Can you provide your e-mail or number so that i can get in touch with you for information on contract agreement etc..

Thanks,

NBay

Arun Kumar Singh

GST Advocate

15220 Points Posted on 28 June 2012

Sub-rule (2) of Rule 3 of the export of services rules, 2005 as amended by the export of services rules, 2006 states that the provision of any taxable service shall be treated as export of service when such service is delivered outside india and payment for such service provided outside india is received by the service provider in convertible foreign exchange. you are exempt from service tax. you can deduct the all expenses from total income.