Income by providing service to usa from india as individual

Tax planning 442 views 3 replies

Raju Patil

Partner

29 Points Joined January 2015

I Have My business to provide Graphics service via email to USA clients and recives payment via PayPal to Indian Bank in Indian Rs. I stays in India and works from home. do i need to pay any income tax if so How can i get expection for this. under which section >

I was thinking that i earn a $ for India so i would not be taxed at all al my payments are in $ but automatically converted and transfered to my linked savings bank account.

I genrate about 7 lack per annum all thru abroad customer payments only

I need to know whethe I am taxed if yes to what extent and if exemption is available than how much and under what category.

Replies (3)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

If you are resident then your income is chargeable to tax by virtue of S. 9

You can claim deduction of expenses you incurrred for providing this service to your client, once you have computed the income , you may claim deduction under Chapter VI A [like 80C etc.]

You are not liable to Service tax, but Income tax is still applicable.

Guest

Service tax not applicable as place where u provided service is outside India. Also u are nt crossing ssp exemption of 10 lac. Income tax is applicable.

Madav

Senior Consultant

172 Points Joined April 2014

Since you are receiving the remenuration in India hence it is taxable ireespective of your resident status...If you are receiving the remenuration outside India and then it is repatriate to India then also it will be taxable in India as long as you are resident (status) in India...(refer section 5 for details)