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If I want to work for UK company as a contractor from India (Remotely Software developer) then Do I need to Make any legal agreement in India or UK?

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You can work as independent consultant in India with out any issues. Be sure to declare your income and pay taxes as there will be no TDS.

Consult a CA, you can show certain expenses, e.g laptop, broadband etc and reduce your tax liability.

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Realistically, you need a written contract. If you don't have one, then there's not a lot you can do if they refuse to pay you after you have done the work.

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