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Tax for sotware

Mohit (CE) (25 Points)

07 May 2022

Sir,

If I develop software for foreign company, what will be liabilities of Tax. Do I need to register a company or can be on personal name ? Thanks

MAP

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5 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 07 May 2022

You dont need to register yourself in GST unless your sales cross 20 Lakhs.

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Mohit (CE) (25 Points)
Replied 09 May 2022

Thanks a lot Ruchika, but what about Income received ? Will it be clubbed with ?

JJJ (Need help) (673 Points)
Replied 09 May 2022

Originally posted by : Ruchika Somani
	You dont need to register yourself in GST unless your sales cross 20 Lakhs.

Even if a single paisa of professional / business income comes from outside your state, GST registration is needed.

JJJ (Need help) (673 Points)
Replied 09 May 2022

Oh and to answer the rest of the query:

You don't need any additional registration for tax purposes; it's not a new entity, but just you earning an income from an additional source

All your income ultimately is combined in your tax return anyway. And almost everyone derives incomes from more than one source (eg salary + interest + dividend + capital gains etc etc). Do you should list what you get from this foreign company under professional income.