Ask Experts Questions for FREE Help !
Ask
    scorpio222's Avatar
    scorpio222 Posts: 13, Reputation: 1
    New Member
    		  
    #1

    Aug 29, 2012, 03:39 PM
    Independent Consultant Working In India For Us-Based Company.
    I am a newbie to AndhraFriends. I had a question regarding taxes and payment procedures for an indian citizen working for a US company from India.

    I am currently in USA, working for a US company here. I am moving permanently to India (yeah!! ) and my company wants to retain me by making me an independent contractor who works from India on a full-time basis on a fixed salary per annum in dollars.

    I did some basic research and understand that this is possible.

    But my questions are,
    1. How will I get paid if I am just an individual in India and I do not have any business entity to pay the amount to? My company gave me few options:

    a. They will pay me via paypal, which I think is illegal since paypal has stringent rules on that - Am I right?
    b. They will transfer money to my indian bank account, which I will get in converted currency - Is this legal for either of us?
    c. They can transfer money to my US bank account and it will be a direct deposit like I currently have - Will I need to pay US taxes on this?

    2. If either of the above options are selected and right, how will the India government know how much I am earning and how will I pay my taxes?

    3. If I am paid as an independent contractor do I need to create a company on my name or can they transfer money just to an individual's account like me?

    4. What is the best legal way to enable this?

    I would really appreciate if you could take some time and help me out over here since I am breaking my head not knowing whom to contact and what to do. My company is only a start-up and so they do not have much information on how to enable this process.

Check out some similar questions!

I was working as a consultant for a company in IL, and I flu to the client site in NY [ 1 Answers ]

I was working as a full time employee for a consultanting company in Chicago, IL. While I worked on a project for the client in NY, I flu there every week (Mon-Thur). Do I need to pay tax to NY? The tax software shows that I own them more than $3400 tax, and I have only worked there for about 1...

State tax for independent consultant in MA for a CA company (1099 from CA) [ 1 Answers ]

Hello, I'm a little puzzled as to where (or if) I should file my state tax for this year. I've worked as an independent contractor (consultant) from my home office in MA for a company based in CA. They sent me a 1099 form. I am unsure whether I should file taxes: - in Massachusetts - if I do...

Does a consultant working outside the US for a US Company have to pay taxes in the US [ 1 Answers ]

Hello, a. I hold an Indian Passport. b. I have a residence + work permit for St. Maarten (netherlands Antilles) c. A company in the US has hired me and I will be offering them Consultancy services & working as an agent outside the United States (in Netherlands Antilles) d. I would be paying...

H1 consultant working in other state than company [ 1 Answers ]

Hi I am on H1 visa and I work for a company which is in Texas. Presently I am in California, working for company's client. My payroll is run by company in Texas and they apply Texas State Tax(No sate tax) and Federal Tax on my pay check. Do I need to pay California Income tax ?

View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.