Foreign Income

[RAHUL MALHOTRA]

Hi

I am resident of India. I receive receipts from foreign that directly credited to my saving account. I provide tourist guide services to clients of one of foreign company. Certificate of foreign inward remittance shows purpose of receipt as Tours and Travel. Now i want to know what are statutory liabilities that i have to incur. Shall i have to pay income tax on that. Amt exceeds 10lakhs shall i have to register under service tax as these are export of services.? Should i have to inform RBI. Very much confused.

please guide me as i ve to file my return before 31st march 2013.

[Surender Gupta]

If you are providing services to the clients, you need to compute the income under the head Profit and Gains from Business or Profession under Income Tax Act, 1961.. You income may be taxable as per your profit and loss account and computation of income after availing deductions, benefits and exemptions.

As long as service tax is concerned, though my personal views are different after scrutiny of the facts, as per the Education Guide issued by the CBEC, your service would be liable to service tax in India.

For FEMA provisions you may refer to FOREIGN EXCHANGE MANAGEMENT (EXPORT OF GOODS AND SERVICES) REGULATIONS, 2000.  and Master Circular on Export of Goods and Services.

[RAHUL MALHOTRA]

Thanks sir

AI Summary

Income tax on foreign service receipts: taxable as Profits and Gains from Business or Profession; service tax may apply. Resident tourist guide receipts from foreign clients credited to a domestic account must be computed as income under Profit and Gains from Business or Profession, taxed after allowable deductions; services are likely subject to service tax per CBEC guidance, and FEMA Export Regulations and related master circular guidance apply for reporting and compliance.