Indians Pay Attention!!!

sarahFreder Peon

Messages:: 408

Likes Received:: 2

Best Answers:: 0

Trophy Points:: 0

#181

Good post, Abishek.

till now before reading your post. i never knew such thing.

i am working as a free lancer, i will earn very less amount say less than 200 $. do i need to pay tax. i am having my funds in paypal. also i dont have pan card.

i quite confused can you explain me clearly.

sarahFreder, Mar 3, 2008 IP

coolmayank17 Member

Messages:: 26

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 36

#182

thanks for the information

coolmayank17, Mar 3, 2008 IP

coolmayank17 Member

Messages:: 26

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 36

#183

its really a great help for me

thanks

coolmayank17, Mar 3, 2008 IP

ferrari_manush Banned

Messages:: 52

Likes Received:: 1

Best Answers:: 0

Trophy Points:: 0

#184

xoom is a complecated for others

ferrari_manush, Mar 3, 2008 IP

hyd_admin Peon

Messages:: 47

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 0

#185

Hello all
Thanks for the info ....

anyone knows IEC expert phone number in hyderabad ... anyone give me the phone number to get iec in a week for 2000 to 3000 Rs/-

Thanks guyssssss

hyd_admin, Mar 3, 2008 IP

hexadesigns Peon

Messages:: 350

Likes Received:: 8

Best Answers:: 0

Trophy Points:: 0

#186

samlocalguy said: ↑

hahahaha...

Very Nice info " hexadesigns"

One Ques. : Is it legal to take payment in our current account by paypal direct transfer?
If yes how we can show that transaction?

Which law or agreement shows that it is legal. Please if you kmow any site post here.

Click to expand...

It will be treated as a domestic credit and not an international one.

BTW this thread starter was posted by me on Jan 2005 originally here:
http://forum.scriptlance.com/showthread.php?t=247

Thats more than 3 years.

Abhisek copied and pasted it here and started this thread on May 16th 2006.

The information thus is quite old and outdated. I am planning to post a fresh one and doing up a writeup which will clear most of the things. There have been a lot of additions, amendments etc. to the existing laws. So do not take this as something uptodate.

I also suggest to consult a good tax attorney and NOT a CA.

hexadesigns, Mar 4, 2008 IP

coolkarthik88 Peon

Messages:: 28

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 0

#187

Good post Abhishek. I earn money by blogging, and this advice will help me stay on the clean side of law

coolkarthik88, Mar 5, 2008 IP

samlocalguy Active Member

Messages:: 1,297

Likes Received:: 34

Best Answers:: 0

Trophy Points:: 90

#188

Gr8 Hexa... Hope you will share more info...

samlocalguy, Mar 6, 2008 IP

MeetHere Prominent Member

Messages:: 15,399

Likes Received:: 994

Best Answers:: 0

Trophy Points:: 330

#189

Any steps or procedures to follow if withdrawing funds directly to a bank account via Paypal ?

MeetHere, Mar 6, 2008 IP

esbdmb Peon

Messages:: 47

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 0

#190

Check out this post on Abhishek the scammer - I wouldn't believe anything he says:
http://forums.digitalpoint.com/showthread.php?t=743420

esbdmb, Mar 8, 2008 IP

lavista4u Member

Messages:: 82

Likes Received:: 4

Best Answers:: 0

Trophy Points:: 48

#191

esbdmb said: ↑

Check out this post on Abhishek the scammer - I wouldn't believe anything he says:
http://forums.digitalpoint.com/showthread.php?t=743420
Click to expand...

Yep ..I agree....do not fear..India is in midst of a revolution...these small things will be taken care of by itself..concentrate on your work folks

lavista4u, Mar 8, 2008 IP

hexadesigns Peon

Messages:: 350

Likes Received:: 8

Best Answers:: 0

Trophy Points:: 0

#192

lavista4u said: ↑

..these small things will be taken care of by itself..concentrate on your work folks
Click to expand...

Which "small things" are you talking about?

hexadesigns, Mar 9, 2008 IP

louis2 Peon

Messages:: 1,410

Likes Received:: 15

Best Answers:: 0

Trophy Points:: 0

#193

hexadesigns said: ↑

It will be treated as a domestic credit and not an international one.

The information thus is quite old and outdated. I am planning to post a fresh one and doing up a writeup which will clear most of the things. There have been a lot of additions, amendments etc. to the existing laws. So do not take this as something uptodate.
Click to expand...

Waiting for it.

pleas do let us know here when you make such post.

louis2, Mar 10, 2008 IP

Cexchanger Peon

Messages:: 1

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 0

#194

hi Abhishek,
But nobody foolw this rules? becasue of our correption politician and correption officer.

Cexchanger, Mar 14, 2008 IP

aspire Well-Known Member

Messages:: 4,003

Likes Received:: 76

Best Answers:: 0

Trophy Points:: 175

#195

Any updates on this.

aspire, Mar 21, 2008 IP

baokychen Banned

Messages:: 245

Likes Received:: 2

Best Answers:: 0

Trophy Points:: 0

#196

Good post . great news for us to know

baokychen, Mar 24, 2008 IP

roughsoul Well-Known Member

Messages:: 179

Likes Received:: 3

Best Answers:: 0

Trophy Points:: 130

#197

-Abhishek- said: ↑

Fellow Indians,
I have a suggestion for you all. DO NOT bring your money home by any false procedures. Remember you are handling foreign transactions and aint no joke. Follow a shortcut procedure and you might fall into violation of FEMA act which is NON-BAILABLE.

And if you dont get what I am saying its time to read some stuff for yourself -
http://www.indiaitlaw.com/softexplaw.htm

Remember one thing - If you do not have a IEC number you are doing foreign services ILLEGALY. No exceptions.

DO NOT! again I say DO NOT! use XOOM.COM for transfering your funds. First of all you should know what are the methods you should NOT use for transfers -
1. Western Union
2. Money Gram
3. XOOM.COM
4. Cash2India
5. Any ATM Debit card

These methods are mainly done for NRI Indians who want to send funds to their relatives or loved ones to India fast. They are meant for PERSONAL money transfer only and *NOT* for any business deals.

Always remember one basic thing - Whatever Funds you are bringing in it should hit your business bank account first. If you are doing business in your own name then the funds should come right to your savings bank account. No exceptions. Whatever bank it may be but it must be a bank.

The 2 legal ways that you can use are -
Wire your money to your bank account.
Bring a check (eg. Paypal Check) and deposit it to your account.

And when your bank account gets funds from foreign banks remember they are reported to RBI as a bank's policy. RBI -> Reserve Bank of India.

So, keep your IEC code number handy and try to submit the softex forms (if you are into serious business you must!)

To get the IEC code you have to visit the Office of the Director General, Foreign Trade in your city. You have to buy a form for application of IEC code. To submit the form you will need 2 mandatory things
1. PAN card
2. Your Banker's Ceritificate ( The format you will get in the application form).
Your Bank will certify your account in their letterhead.
It takes around 15-20 days to get the code if everything is ok.

The difference between Wire/Check and WU,Cash2India is very simple. As I said earlier a legal money enters your bank account first and does not fall cash in your hand. WU etc all deliver you cash which means ... the RBI has actually no trace of it. Wire and check will never give you cash. They will be credited to your bank account which means that is a legal money and you have to pay the taxes for it.

To increase the potential of your business do everything through your bank account and not via cash. You may have to wait for a few days to get funds or may loose some fees but I tell you the legal side is worth it.

Now most people think that PayPal sends check to you in Indian currency, but please understand that PayPal is just your source of fund, still it is a foreign transaction.So at the end of the year put all the Xerox copies of the received checks and take out a print out of your all year long paypal statement. File them up. Proceed to STPI, fill out a Softex form and submit it. Done. The IEC code is needed when you submit the softex form and believe me its not so comlicated as you are thinking. Moreover you will get Tax exemption on foreign revenue.
Its true we do not get enough time to do all this but official formalities to keep ourselves completely legal and clean.
Just remember one basic thing if you DO NOT have a IEC number you are not elligible to give * any * foreign service or consultation or anything.
If you are doing it you are doing it unofficially and if you want to keep it unofficial you can always keep it.
I do know a lot of guys who work like this and has been working like this for years...
well i have mentioned the rules and regulations andit now depends entirely on you what will you do.
I have been working on this post and stuff, for a long time now.
this post was made by a friend in another forum! So read on!
I had a talk with STPI and here is the news (you all get excited)

1. The IEC number is MUST for just anyone!!!
2. Softex forms are to be deposited only if your Invoice Amount exceeds 25000 USD for a single project. If your invoice amount is below 25000 USD it is NOT MANDATORY to submit.

Regarding payment options they only mentioned that Bank Wire is the safest and most trusted method.

here is a list of STPI offices and I will recommend everyone to contact over telephone and get the info and put them here...

http://www.stph.net/contact/ocenters.html

Ok, one more thing, if you are into serious business like me and your invoice amount goes above 25000 USD, then fill the softex form and register your UNIT with STPI and get a green card (thats what they call it), once you have done that you can enjoy a tax holiday!

Cost for IEC code - Rs 1000.00
Cost of Softex - Nil

So, the moral of the story is, its better to follow the rules then to say a "sorry" later.

Hope it helps, Do rep me if it really did
Regards,
Abhishek
Click to expand...

@Abhishek This code is needed for people who are into software business and the CODE stands for "Importer Exporter Code"..

So all fellow India's who are having this query.." If i am a freelancer then i need the code"

Ans:- If you are into software business then you need it else you don't need it at all.

So for all other kind of freelancers, simply dont worry. You just have to give the normal taxes.

If you still have any queries then just consult any CA and you will gt to know everything in details..
Cheers
Earn and enjoy

roughsoul, Dec 4, 2009 IP

Augustin Peon

Messages:: 48

Likes Received:: 0

Best Answers:: 0

Trophy Points:: 0

#198

Nice share Abhishek sir.

Also I need to clear a doubt..

As we see sometimes in internet that it shows some Company is running the site and name appears like this: abc LLC or abc Lda ....

So what is the procedure in India to create a registered company online ?

Regards.

Augustin, Dec 4, 2009 IP

taminder Peon

Messages:: 581

Likes Received:: 4

Best Answers:: 0

Trophy Points:: 0

#199

good looking out

taminder, Dec 4, 2009 IP

Log in or Sign up

Indians Pay Attention!!!

sarahFreder Peon

coolmayank17 Member

coolmayank17 Member

ferrari_manush Banned

hyd_admin Peon

hexadesigns Peon

coolkarthik88 Peon

samlocalguy Active Member

MeetHere Prominent Member

esbdmb Peon

lavista4u Member

hexadesigns Peon

louis2 Peon

Cexchanger Peon

aspire Well-Known Member

baokychen Banned

roughsoul Well-Known Member

Augustin Peon

taminder Peon

Useful Searches