Receving money from foreign country : legal formalities

Others 992 views 5 replies

Raghu

Propriter

34 Points Joined September 2011

Friends, I am sorry, if i have posted in a wrong category. Please Advice. I am a freelance software consultant. there is an upcomming software development project from a foreign client. he will be doing a wire transfer into my bank account. I am about to open a bank account in company name (softInfotech) (proprietorship.) Since money is going to come from foreign country, are there any other legal formalities that i should know? Please advice.

Replies (5)

O.D.SHARMA

DGM-F & A

1734 Points Joined November 2007

Hi,

There is no issue,You are taking advance or against billing.make sure proper accounting,Billing,Records of Forex transaction.Don't worry if things/work is legal no problem.Hope u have PAN no/Tan No & checking all TDS etc liability(If any0.

Akhil Sharma

Service

141 Points Joined December 2008

Agreed with Mr. Sharma.

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

Please remember to collect FIRC(Foreign Inward Remmitance Certificate ) from your Bank with proper descripttion of the money that you are receiving.

Anuj

+91-9810106211

femaquery @ gmail.com

Raghu

Propriter

34 Points Joined September 2011

Hi SharmaJi and Anuj ji. Thanks for valuable inputs. I have few more queries.

1. If I hire contract people from some company for a month, they are charging me X amount + Service Tax.
When they produce bill, Do I have to Minus TDS from the bill amount? If yes, then I guess I will need
TAN No, otherwise not, right ?

2. Anuj ji: To get this certificate from bank, what evidence bank is going to ask me to produce?

Regards

O.D.SHARMA

DGM-F & A

1734 Points Joined November 2007

Hi,

There are two different components.Payment(Forex) have nothing to do with your work exp.( Thru contract technician,machine,space or other exp) you have to have TAN/PAN Nos for your ioncome return of IT & TDS return ,You may require to file TDs return on your contracts /part time technical support staff,any other exp. You can meet bank manager of your account ,He will ask for some documentation of agreements,remitance process is very simple.