Tax implications for IT services offered from India?

I am working as a consultant to a company registered in US. They had promised to pay me 1000 USD per month and I am of the impression that I will have to pay income tax for that accrued income (am registered under propreitorship owned company in India) which got converted to INR on transfer. Are there any tax implications for the US company, how would they treat this expense?

One Reply to “Tax implications for IT services offered from India?”

  1. If the US company has a permanent establishment in India or any agent in India, then only that establishment or agent which the case may be is liable to deduct tax at source. Otherwise you need not worry their tax liability. All the receipts coming as fee will be gross income from which you can claim concerned business income.

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