Receive wire transfer to SBI

Hi,

I have to receive about 7k $ from israel through wire transfer. Before this i used to use paypal (never received more than 2.5k) & withdraw the payment to my SBI account in splits of $500. Now, things have changed for paypal & i can't receive such amount through paypal & paypal will charge more (about $277). Wire transfer seems good to me & my client is ready for it.

Now, since 7k $ is a big amout, when i receive it in my account, will the bank ask for any kind of reports to RBI (i read somewhere that payment over some limit from foreign should be reported to RBI)...i'm totally new to this...I do not hold anything other than a PAN card (will be paying my first income tax from this year)....

So, My Question is, is it ok to ask for wire-transfer for such amount?

Thanks....

 

You want to receive money from higher risk country so I think you need to split this payment in to 14 parts and also try to ask this question to your bank.

I think you will face legal problem and they will ask you some question:
- How you earn this money?
- Before this do you receive money more then $500? If yes then why you not pay TAX?


Since you did not pay your TAX I think you violate FEMA Act., Import Export ACT., TAX, etc..


-- Best is first pay your previous TAX, Register your business as a Sole Proprietorship, get IEC Code, If you earn more then 10 Lack per year then apply for Service TAX... > VAT

 

thanks for reply....previous year, my earnings were less than 1.6 lacs, so will pay my tax this year...is it mandatory to get IEC code??? My work include ad-supported android games & i get paid for ads displayed inside my games. Is it like if you receive more than $500, then you have to pay some type of tax???

 

You provide a services(Advertisement) so you need to get a IEC Code for "Services"


Where you are from? maybe we both are in same boat..

 

I provide games for free to people & an advertising company includes their ads inside my games... so that advertising company pay me for those ads displayed inside my applications.....So, is it like we are receiving money from a foreign company & not providing any kind of services????

BTW, i'm from mumbai, what about you? You also do some kind of online work? website or games like me???

 

Of course you are providing Advertising Services to that company.

 

You provide a advertisement services to your advertisers and they are from other country so your business come under IEC 'Services'

You can ask about iec legal question in C.A(Charted Accountant) indian forum.

I am from Delhi and I have a Web Hosting site.

You provide a advertisement services to your advertisers and they are from other country so your business come under IEC 'Services'

You can ask about iec legal question in C.A(Charted Accountant) indian forum.

I am from Delhi and I have a Web Hosting site.so your business come under IEC 'Services'

You can ask about iec legal question in C.A(Charted Accountant) indian forum.

I am from Delhi and I have a Web Hosting site.

You provide a advertisement services to your advertisers and they are from other country so your business come under IEC 'Services'

You can ask about iec legal question in C.A(Charted Accountant) indian forum.

I am from Delhi and I have a Web Hosting site.

 

ok, that means i have to get a IEC code, anything else other than this???? Will IEC affect my tax calculations?

Thanks for your help...

 

See ecoin.cc, they're a payment system for receiving commissions from affiliate programs and other systems. Basically, companies will either send cash or wire transfer to their accounts and then the money is in your ecoin.cc account. They can give you debit card, transfer to other e-currencies or bank account and so on. I use it with some US affiliate programs just because I get the money much faster to my debit card

 

I don't have idea on IEC tax calculation but If your earnings cross more then 10 Lack per year then you need to get a VAT number and If you get a VAT number then you need to pay VAT TAX.. (10%?)


+ 10.50% TAX on $7k


Currently you need to get a:
- PAN Number
- IEC Code (Note: For getting a IEC Code first you need to obtain a IEC Form/Certificate from your bank)
- Register your business as a Sole Proprietorship...(Required a Identity card like PAN Card or Driving License, Business Type, Name and Home Address Proof on your own name or your parents name)


Please note: Sole Proprietorship don't require registration but If require in your State then you need to register your business as a Sole Proprietor(Single Owner) and maybe your state charge TAX on this type of business..

 

Also I was miss your last reply..

Last year you earn 1.60 Lack but not fill a TAX return??(Zero Return TAX Form)


-- Don't worry about this all and just get a PAN, IEC, Sole Proprietorship(Only If Required in your local state/low) and each year pay your tax and sleep relax...

 

Thanks a lot mate....that's really helpful.
One more question please...
How do we get IEC certificate from bank?? Will it require more legal documents to be presented to the bank??

 

Ask to your bank, they will give you a Format of bank certificate for issuing a IEC code and then you need to get a signature of bank manager with bank Stamp.