Legal channels for accepting foreign remittance for consultancy work

K

Kneo

Adept
I am sure we'd have quite a few of independent consultants amongst us who have worked on projects for US based firms/individuals. How do you guys get paid? What is the simplest and cheapest option to receive foreign remittance in India which is almost hassle free for the US client i.e. no new registrations/sign up with banks, etc.

Also, I am looking only for legal channels as I am prepared to pay tax on whatever small amount that I may earn from consultancy.
 
bank wire transfer , depending on the bank you will be asked to fill forms and sendthem your invoices everytime a transfer comes in , depending on nature of work you might require an IE code
 
I am sorry kippu but what is an IE code? Also, the invoices would be on whose name? I don't have a registered company. I just did some work and the person wants to pay me !
 
well then just take it through western union and forget about it , least hassle

second option , ask your bank for swift code and give that to your client and get it transferred .... ask your bank if they will ask questions about the incoming transfer ... savings account wont have any problems though

but if you are doing it for longterm , get a current account in the bank and yea then will tell about that later :)
 
You don't need a registered company to receive a wire transfer. You can always raise the invoice in your client's name as an individual (self-employed professional) and submit it to the bank. But do look into whether your services come under the ambit of service tax. If so, you would have to apply for a service tax no. and would also have to file quarterly returns for the same. If this is a one time thing though, I wouldn't bother with the service tax thingie but if its going to be a regular feature, you need to look into it.
 
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