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I have an independent contractor agreement and am paid by a U.S. company in dollars after I invoice them. I have the following questions. I am in India, and am working from India for the client.

  1. Do I need to pay tax for my income coming from the U.S. as it is deposited in dollars in my Indian savings account?

  2. Do I need to file form W-8BEN form to the IRS?

  3. I am aware that I need to pay income tax to India as per the slab but not service tax as I am rendering services to the client, it is actually exempted. Is that right?

  4. Will there be an issue with my H1-B visa filling by some other company in U.S.?

  5. What is GST/HST? Can someone please explain?

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Do I need to pay tax for my income coming from US as it is deposited in dollars in my Indian savings account.

Yes you are liable to pay tax in India as per tax bracket. Please note you have to pay tax in advance else you will end up paying penalty.

Do I need to file W8BEN form to IRS

Technically not required. However your company may feel at ease if they have it on file. So just give the W8-BEN to your company, else they may withhold taxes.

I am aware that I need to pay income tax to india as per the slab but not service tax as I a ....

Yes No Service Tax

Will there be an issue with my H1-B visa filling by some other company in US?

This has no bearing on your H1-B visa.

What is GST/HST can someone please explain?

Need more inputs.

Edit:
If you are working as Free Lancer, you have to state as such. You shouldn't give incorrect information in visa application.

  • "GST/HST" is what we call our value-added tax here in Canada. The "GST" is federal only, charged in provinces that manage their own sales taxes, while "HST" is a harmonized tax that adds a provincial portion for those provinces that have chosen to harmonize (integrate) with the federal sales tax. – Chris W. Rea Nov 25 '15 at 15:42
  • Thanks for your answers. I got this word GST/HST from some other blog. Looks like it is not relevant to me. – Lakshmi Nov 26 '15 at 11:35
  • Thanks a lot for your answers. My 1st question I did not ask properly. I would like to know if I need to pay income tax in US.? I am physically in India. I got this word GST/HST from some other blog. Looks like it is not relevant to me. For H1 --- If I need to show my experience how should I mention whether as employee of this company or Independent contractor. What should I mention in case I do H-1 through another company. – Lakshmi Nov 26 '15 at 11:42

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