Currently I am working with some clients from USA and I just wanted to Avoid PayPal due to their high commission rates. So i decided that I will take the money as a direct Wire transfer from them. The services that I offered are basically SEO and Internet marketing. The problem is I do not have a trade license and a simple Savings Account in United bank of India. Can someone please help me as to what formalities I need to full fill according to RBI guidelines and what should be done to receive wire transfer and not be caught by the Income Tax Department.
I think your problem is "not be caught by Income Tax Department". As part of my work I frequently do international wire transfers. To send or receive a wire transfer you must have a bank account, and they cost anywhere from 12 to 30USD for both the sender and the receiver. Paypal is probably much cheaper. You might be able to have them send money via Western Union, but there are fees involved with that also.
But in India paypal charges 2.9 Percent + 0.30 USD to 3.5 Percent+ 2.5 percent on Currency Exchanges....for 2000 USD I will loose a lot like that....so for wire transfer do I need a legal company or I can show that the money earned is from Freelancing...
There are no really any legal procudures for bank transfers for world wide , you just have to show the bank authority the payment you making is legit payment and its off