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Receiving Payment for providing services of website development from a foreign company

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What are the things that need to be taken care of while receiving/salary money for providing services of website development from a foreign company outside India that has no presence in India to comply with Indian laws? 

 

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When receiving salary or money for website development services from a foreign company outside India with no presence in India, consider the following to comply with Indian laws: 1. *TDS (Tax Deducted at Source)*: Ensure the foreign company deducts TDS as per Indian tax laws (currently 10% for non-resident individuals). 2. *PAN (Permanent Account Number)*: Provide your PAN to the foreign company for TDS purposes. 3. *TAN (Tax Collection and Deduction Number)*: If the foreign company has an Indian representative, they should obtain a TAN for TDS purposes. 4. *Form 16A*: Request the foreign company to issue Form 16A (TDS certificate) for the taxes deducted. 5. *Form 26AS*: Verify your tax credit in Form 26AS (Tax Credit Statement). 6. *Foreign Exchange Management Act (FEMA)*: Comply with FEMA regulations for receiving foreign remittances. 7. *GST (Goods and Services Tax)*: If your services are subject to GST, ensure the foreign company pays GST or you pay GST under reverse charge. 8. *Income Tax Act*: Declare the income in your Indian income tax return and pay taxes accordingly. 9. *DTAA (Double Taxation Avoidance Agreement)*: Check if India has a DTAA with the foreign company's country to avoid double taxation. 10. *Consult a CA*: Engage an Indian Chartered Accountant to ensure compliance with Indian tax laws and regulations. Remember to maintain proper documentation and records for all transactions.


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