Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

What is my tax liability being a contract to a US company in India?

Tax planning 163 views 1 replies

Amjath Khan

Manager

32 Points Joined September 2016

Hello All,

I've recently been asked to work as a contract for this American company as a full resource under "Technical Consulting Service". So, they are going to pay me every month from outside India directly into my bank account (wire transfer). I was asked to get the help of a CA to know more about my Tax liabilities.

Can you please help me with understanding what's the difference between being a salaried individual for a company in India and being a contract to some company outside India? Also, about my tax liability, TDS if there's any, informing bank (SB) and how to save on Tax?

Thanks for the help!

Replies (1)

ANKUR TAH

Teacher Consultant and CA finalist.

543 Points Joined February 2014

I take assumption that you have raised bill to foreign company against your contractual service or work may be. So your income should be treated as business Income. There is no question for deduct TDS by foreign co.
Although you have made foreign transaction so you must compiled foreign regulation made by RBI