Navigating Tax Implications for Receiving Salary in Pounds as an Employee of a Foreign Firm

I recently joined a UK-based recruitment firm (no presence in India yet). I am the first employee, and I receive my monthly salary directly from the UK, so there are no deductions. How do I show my taxes if my salary is credited to my savings account? I am confused, please help.

You have to show this income as Professional Fee. Pay your taxes directly to the Income Tax Department. You pay advance tax instead of TDS deducted by the employer.

You can claim expenses in this case as you are now a professional and receiving professional fees.

In addition to the above, if your salary/fee is more than Rs 10 lakhs in a year, then apply for service tax registration with the Indian Government and charge your recruitment firm 14% service tax on your bills. Deposit the service tax amount with the service tax department.

If you need any further suggestions, do let me know.

Please consult a good chartered accountant. He will do the needful. For more details, please refer to the link from this site - https://www.citehr.com/40040-tax-implications-employee-foreign-firm.html

Hello Manjay Kumar Sharma,

I am not sure if service tax would come into the picture here. Based on what the initial posting says, all of the work is related to the UK without any Indian operations or activity.

Regards,
TS

Dear Abu,

We have an urgent vacancy for an Australian Placement Consultancy on a freelance basis.

Please email your resume to ankeshjainredalert@gmail.com with the subject "FREELANCE AUSTRALIA RECRUITER".

Looking forward to your reply.

Thank you.

Dear Abu,

You don't need to take service tax registration because export services are exempt as per service tax rules.

Regards,
Ramesh Singh