NRI looking to provide freelance online only training

Situation: I am an NRI, working in middle east. I planning to start teaching online instructor-led training's. I don't currently have any business registered in India. The students will be mostly from India or could be any other country.

Queries:

1. Is it feasible to do this legally without registering a company?

2. Can I link my NRO account through some Indian payment gateways(e.g. instamojo or ccavenues) to collect Fees. If yes, what could be tax issues.

3. Also what are income tax or professional tax implications, if money is deposited in NRO account and How can I pay it ? Currently I don't have any other income in India.

4. Is there any taxes e.g. service tax etc I need to collect (assuming total revenue is less than 5 lac in year) from students.

5. How do I provide payment receipt to students or can I invoice them based as an individual ?

Thanks for help.
Asked 1 year ago in Income Tax from Middle East, Delhi
1 It is not necessary to have a company registered in India but you may do the business of training as a branch of your concern in Middle East or even you may have a franchise / associate in India.

2 In my view you may link your NRO account through the Indian payment gateways, as they long as they accept it. From tax point of view,  the income will be treated as income earned in India and will be taxed accordingly. Further, as you are a Non Resident, the payees will be under obligation to deduct tax at source. It may be very tedious and inconvenient way of handling your Indian affairs, as the payees will have to comply with the TDS provisions, which many will find difficult to comply with. So from this perspective, you need to have an Indian establishment which will be a taxable entity under the Indian Income Tax Act.

3 You will have to register for professional tax with the state in which you will be carrying your business.

4 You will be liable to service tax, if the value of taxable services exceed Rs 10 L.

5 In view of 2 above, I suggest that you should have an establishment in India and invoice the students through such establishment.
    
B Vijaya Kumar
CA, Hyderabad
290 Answers
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  Talk to B Vijaya Kumar
Yes it can be done legally without registering a company.
Yes if your income is more than Rs 2,50,000 then you will have to obtain Pan and pay Indian Income Tax. 
You can pay tax by way of online payment. we do not offer an opinion on professional tax.
The service tax is chargeable if gross receipts from service is more than Rs 10,00,000 in a year.
You can provide invoice and receipts as an Individual.
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
  Talk to Vijay N. Kale
It is better you register a company or open Branch in India.
You can also link your NRo account for indian Payment 
Income accrue or arise in India will be taxed in India.
If your revenue is less than 5 lacs no need to take service tax registration.
You can invoice them based as an individual if u dont open a company.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani

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