Hi, I am working for an an organisation which does not have any office in India.I have registered myself as a service consultant,paying 18% of my salary every month(IGST) and again income tax on the total income. I end up paying lots of money every year. Is this the only way to pay tax for a consultant like me or is there some other way to pay less tax.(TDS etc)
Hi,
There is a possibility to claim back the IGST if your service falls in the basket of export of services.
With respect to income tax also, you can opt for presumptive taxation, if you meet certain conditions. In that case you will have to pay tax only on 50% of your income.
To give your exact answer, we need to discuss the facts in detail.
Please feel free to call/ revert in case you need more clarity.
Hello
Please clarify whether it is a salary income or a consultancy service
In case its a service, your services shall be classified as zero rated export supplies subject to other the conditions being fulfilled. You can claim back the refund of IGST paid on such services.
Hi Lakshita, I am getting my salary as consultancy fees as there is no office in India.I have to invoice my fees to them every month. Any suggestion how to get rid of that 18% IGST plus income tax!!I do not think no body is paying such huge amount just because they don't have an office in india.
If you're receiving such fee payments in foreign currency, you can claim the refund of IGST paid. You will require FIRCs for the same
Hii
You can get refund of IGST paid on export of services , thus this is not your exp. its your fund blockage only, and via this you can also claim taxes which you are paying on mobile bills and other exp which you are incurring in performing your work.
Hi,
Can we understand what kind of services do you provide and whether the payer is a non-resident / foreign entity?
If the services are being provided to a foreign entity, then you can state that the services are being exported and hence, there will not be any GST.
For income-tax purposes, if you are providing professional or technical consultancy services, then you can claim benefit of presumptive taxation. In this case, flat 50% of your income will be liable to tax.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hello,
You may apply for a Bond/ LUT to the assessing officer. If the certificate is granted to you, then you may export your services without paying any GST.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
