Foreign Consultancy

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Dharmendra

researcher

29 Points Posted on 15 April 2011

Dear All,

I am an independent consultant providing research services in the name of a unregistered organization. I have to receive foreign currency from foreign non profit organization for providing them services. The services include providing research based draft involving staffs and other costs. I am receiving foreign currency in my personal account. As per Indian laws how much tax would I need to pay? Do I also need to pay service tax? or just paying the income tax is fine? And whether on the total amount credited or after deduction of costs? Thanks for your expert guidance.

Dharmendra

Replies (2)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Posted on 15 April 2011

Mr.Dharmendra

You have said that yours is an unregistered organisation. I have understood that you have not chosen any trade name. Hence you have not registered your business under the name and style of that trade name with local authorities. Even you do not have any trade name, the business carried on by you is treated as your proprietory concern. The amounts received by you and deposited in your bank account are the gross receipts/turnover of your business. You are entitled to claim deductions for all expenses incurred by you to earn that income, including depreciation on the assets employed/deployed by you in your business. Please also check whether you will be liable to get your acc*nts adudited u/s 44AB of I.T. Act.

Best Wishes

Sathikonda

Dharmendra

researcher

29 Points Posted on 15 April 2011

Dear Sathikonda,

Many thanks for the response. So, i do not need to file any service tax but only Income tax. Am I right? Pl also crarify whether I will be treated as professional or business properieter as the question of getting my personal account audited depends on this.

thanks again

Dharmendra