Freelance Foreign income -taxability

Joshv (CA inter) (288 Points)

23 January 2011  

Hello All,

Apart from my salary income, i am earning foreign income from my freelance jobs.

While invoicing to my clients through Paypal, i am confused to select the services which i am providing will come under which category - whether it is "Accounting & Tax"  or "Data processing" . (I am providing updating transactions into their accounting softwares).

Also, i am not charging them any tax while invoicing them.

Could anyone clarify the following few queries:

1. Do i need to charge them any service tax, VAT, GST for the services providing by me on freelance basis.?

2. What is the taxability of this income in India?

3. Can i deduct my expenditure towards purchase of Computer, data card connection, furniture for freelance setup.

4. Do i need to inform this income to my employer while issuing Form 16 by him for my salary income?

5. Appreciate, if any one can throw some light on the above points to reduce my worry regarding my tax liability.

 

Thanks,

 

Viswanath