Can anyone please guide me with information about the taxes should be paid by a contract position employee. I got an opportunity to work as a contract employee to a company in US from India. Should I need to pay service tax? Can I receive the income as an individual, or should I need to receive it in the name of a registered company. Also please provide information about the ways to reduce the tax.
When I used to work as a contractor, way back in 2007, I used to receive my salary as an individual minus some deductions(IT not the full amount though) done by the company which had hired me. At the end of the year I had to do my IT returns, for which I had to use an accountant. Deductions were as admissible to a normal employee. At that time there wan't any service tax been levied so I am not sure how it affects you now.
If I were in your situation, I will visit a good accountant pronto and get some more clarification because of the myriad rules and regulations.