How do independent it consultants issue invoice

Queries 2359 views 4 replies

Hi All,

 

Good day...!

I am an Indian working in Australia full time.

Well I am doing Product consulting services to an Indian company here in Australia, now I need to issue a Invoice to the Indian company so as to Pay me.

So my Query is to issue a Invoice should I have a company registered in India / Australia. or under certain limitations can we issue a Invoice as an Individual for the services I provide.

Should that be towards my PAN.?

Please do help me understanding the process or redirect me for respective source of information with any template if applicable.

 

Thanks & Regards,

Sai

Replies (4)

dear sai K,

when u were hired by indian coy what kind of agreement you entered,? what was your cirizenship status then? if Indian citizen then? then what is your status now are you indian citizen or Australian?What passport currently u have? If you are now Australian citizens what Australian laws applicable like indian counterpart like FEMA? How you were receiving your earlier payments from your indian employer company? then how did you get payments without your billing /invoicing the Indian employer? like that several questions arise and on answering all like questions then your position of invoicing can be ascertainable? else u may violate some law of india or australia bth laws are inded draconian. So we as attorneys say before accepting any international contracts better ascertain your correct legal position before signing agreements/ after all international trading r contracting are fraught with a lot of clamps even if your work is very nominal. Indian income tax act permits under sec 69C unaccounted business as unaccounted business is not illegal since 1.4.1999 after finance act no 2. there was a catch till recently your expenses must be accounted  but after 30.4.2012 Kerala High court decision in CIT v PD Abraham the tax bench said in as much as your unaccounted money is taxed  by virtue of investigation by AO say by CASS mechanism, then unaccounted expenses also need be allowed and insisting cheque  or DD  payments are preposterous!

So when if u thing you will be in trouble then better write off the income accured as a business loss if you had accounted or do not shosw anywhere, as any default unnecessarily clamps you, so you ask your indian employer pay u as they did earlier withot any invoice, and if Australian Income tax has a similar sec like 69C of indian income tax, so better cheque every thing in detail, else one paise also will unnecessarily affect you if you are a dual citizenship holder.  thanks, 

Hi Balakrishnan,

Well that is a very precise information.

This is my status:

Citizenship:India

Visa : Australia Permanent Resident

Employment: full time with IT company in Australia

Consulting Contract: IT company in India (with whome I have worked 2 years back and was a employee ata that time)

So basically I am an full time employee of company in Sydney where as I need to do consulting for Indian company. There is a relationship between Australian & Indian company so there is no confilt of Intrest and can do consulting for Indian company.

Now the only requirement is besides I get salary in Australia I do business for Indian company.

Here it is where I am comming from, in Australia if your annual income by business (You need to have registration number ABN) is more than $75,000 per annaum then we should pay GST (Tax) else there is no need to pay GST etc. in this case we can issue a Invoice.  One of my Indian company's accountant claims there is no need of company nor registration but a invoice and paying TDS to govt should do.

Hope I explained to the fullest of my situation.

Many Thanks,

Sai

For Invoice automation you can try Invoicera.

Check here-  https://www.invoicera.com/invoice-software-for-consultants.H T M L

Yes! After using Invoicera free version, I can say it is a good software for Invoice Automation.


CCI Pro

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