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Export on software services

Random Name (Business) (5 Points)

30 January 2023

Hello Everyone,

I'm planning to work as a software consultant for a firm in the European Union (EU) from India. I am already planning to register as a firm and get a current account setup in the name of the firm. For GST registration, would I be eligible for exemption from GST, if I file LUT for software export services? The total value for the services would be less than 50Lakhs per year

I will be invoicing the firm in EU and receive the money in the current account setup in India

Also if I were to file ITR, should I be filing as an individual or a firm? If as an individual, can I submit deductions (HRA etc.) as any salaried person would do?

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4 Replies

sabyasachi mukherjee (27589 Points)
Replied 30 January 2023

File as a firm. seperate pan
is required.
if you require further service mail your details to sabyasachimukherjee7098 @ gmail.com

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Random Name (Business) (5 Points)
Replied 30 January 2023

But registered as sole proprietorship, I can always file an individual ITR right? Also I don't understand why a separate PAN is required.

CA Sorav Gupta (Chartered Accountant) (1005 Points)
Replied 30 January 2023

1. You will have to take GST registration. GST will not be applicable on the export of services provided you received the payment in foreign currency within the prescribed time.

2. If you will start as a sole proprietorship firm, then only 1 ITR will be filed. You will have to file the ITR as an individual & will provide the details of the firm in that return only. Secondly, you cannot take the deduction of HRA, however, you can claim a deduction u/s 80GG for the rent paid.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
ACA. Sorav Gupta
(Practicing Chartered Accountant)

3 Like

Random Name (Business) (5 Points)
Replied 30 January 2023

Thank you Sorav Gupta. What if the firm is under my own property? Can I use it for IT reduction under 'loss from house property' and avail other tax deduction benefits like 80C? Or I cannot avail any deductions applicable for a salaried taxation?