In the financial year 2011-12, I've been a freelance consultant working in the Software Engineering industry.
I have questions about my tax liabilities and will be glad to have them answered.
- * I don't have any company registered
- * My annual income has been roughly 20 lakh.
- * Majority of my income has been by billing overseas clients in exchange for software consultancy services
- * Other portion has been by billing local clients for the same services. These local clients have deducted tax at source for each invoice I sent them. The deduction was 10 per cent service tax according to them. They have provided me Form-16 certificates for the same.
- * This year I also became a published author and started receiving royalty payments. The publisher is U.K. based and I don't believe any tax deducations have been made.
- * Some other minor miscellaneous incomes.
I've also had personal and professional expenses for which I've maintained the necessary documentation.
Can you please assert the following:
- * I believe I don't owe GoI any service tax on overseas invoices, yes?
- * Despite paying some service tax (in the form of TDS) I still owe GoI personal income tax, yes?
Am I missing any critical aspect? What would you advise for this year and going forward? Should I set up an organization to better manage things?
Thanks,
Sri
CAclubindia
