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I found a job at a US-based company, and I would like to do all my work for that company while residing in India. My questions are:

  1. Can said company deposit my salary check directly into my account (I have my account in the US as well as in India)? If so, what are the tax liabilities?
  2. Is it legal for me to work as the company's employee, or must I document this work as freelancing?
  3. Do I need to pay both service tax and income tax? (The contracted salary will be USD 1500 / ~INR 90,000.)
  • What country is your citizenship? – JohnFx Mar 20 '15 at 20:10
  • I'am from India. – Saurabh Mar 22 '15 at 17:48
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Can said company deposit my salary check directly into my account

Yes.

Is it legal for me to work as the company's employee

It is perfectly legal. Note that your company has to adhere to Indian laws like TDS etc. Hence it makes more sense to have this as a freelance contractor.

Do I need to pay both service tax and income tax?

Income tax is applicable. There is no service tax applicable.

  • Thanks! Can you please give some more guidance on my Question 1? So, can I get the money deposited in US account and then transfer the money to my Indian account via Xoom.com or other sources. And, then pay the taxes here in India. Is that a good way to get the money in India or shall I deposit the check given by him to my Indian bank account only? – Saurabh Mar 24 '15 at 11:48
  • If its going to be physical paper check, best get it deposited in US and transfer to India via any of the remittance service. Getting the physical check into India and depositing would take close to 2 months to get the funds. Alternatively ask the US company to wire transfer directly to Indian Account. – Dheer Mar 24 '15 at 11:58
  • Thanks a lot Dheer! You solved my queries. FYI - It'll be a physical check. – Saurabh Mar 24 '15 at 12:52
  • Same case here, Can I claim HRA, DA etc from the total amount ? – Robin C Samuel Feb 1 '16 at 7:27
  • That depends on how you are getting paid. If its free lance, you can't claim HRA benefit. However you can claim quite a few expenses, i.e. laptop, phone, etc from the income. Please consult a qualified CA. – Dheer Feb 1 '16 at 8:15

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