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Help with tax for contract with international company

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Kel

Software Engineer

23 Points Posted on 18 July 2020

I am a software professional, I have started to work for an international organisation since sometime, my income may be around 35 lakh.

I would like to know what options do I have for tax saving, what legal documents do I need for doing the job.

Am I eligible for an IEC certificate and an EEFC account, if so would getting those help me in any way?

Replies (3)

Quick Summary

A software professional earning around £35 lakh from an international organisation is seeking advice on tax savings and necessary legal documentation. As the company has no Indian presence, the role is a contract position. The discussion covers the potential need for an IEC and GST registration, with advice that these are generally required for professional services. While there are no direct tax benefits for contractors, tax planning is possible. Both IEC and GST can be applied for online.

CA Raj Doshi

Practising CA

5649 Points Posted on 19 July 2020

If you are salaried employee,then no need of IEC or EEFC account. If you are engaged in professional capacity, you will be required to obtain IEC,GST. EEFC account is optional in both cases.

Kel

Software Engineer

23 Points Posted on 20 July 2020

The company has no physical presence in India, so they cannot employ me thus the job technically is a contract on paper.

What tax benefits can I get working as a contractor for foreign company?

Can IEC and GST be applied online?

CA Raj Doshi

Practising CA

5649 Points Posted on 20 July 2020

IEC AND GST can be applied online.
Proper PROFESSIONAL contract would be necessary so that the GST converts your inward remittance of foreign currency into INR.
There are No Direct Tax benefits as a contractor however tax planning can be done.