Hi,
I have a scranario based query. It would be great if you can help me. Thank you
A person is individual, Indian resident and Freelancer. He recieves monthly payments from clients in USA via wire transfer to bank.
Total recieved payment in a financial year is 10Lakh.
Query 1: Is he allowed to share work/hire other freelancer? If Yes, then Is it okay to pay via cash. What type of reciept or account needs to be maintained.
Query 2: He shares work with three freelancer and pays each 19K/month in cash. Two of these are relative. Would this be an issue?
Query 3: This freelance payment is filled in Blance Sheet of ITR4 under Section header: 4. Debits to profits and loss and sub header[38. Other expenses (Specify nature and amount )].
Details filled are " Freelance work payment to xyz name " Amount Rs abcd/- Is this correct?
Query 4: Any other advice or suggestions.
CAclubindia
