Brief Requirements of Tax Procedures for 𝐅𝐫𝐞𝐞𝐥𝐚𝐧𝐜𝐞𝐫𝐬 𝐏𝐫𝐨𝐯𝐢𝐝𝐢𝐧𝐠 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐎𝐮𝐭𝐬𝐢𝐝𝐞 𝐈𝐧𝐝𝐢𝐚:

✅ GST registration is not mandatory for freelancers providing services to foreign clients, unless their annual turnover exceeds INR 20 lakhs.

✅However, if the freelancer's turnover exceeds INR 20 lakhs, they will need to register for GST and charge GST on their services to foreign clients.

✅ The GST rate for services provided to foreign clients depends on the nature of the services. Generally, the standard GST rate services is 18%.

✅ Freelancers providing services to foreign clients need to issue invoices in the name of the foreign client and mention the GST details on the invoice.

✅ Freelancers need to file GST returns on a monthly or quarterly basis, depending on their turnover. They can opt for QRMP for Quarterly filing, but tax payment is monthly.

✅Freelancers can claim input tax credit ITC for GST paid on expenses incurred in providing such services

✅ As Freelancer is EXPORTING the Services they need to either pay Tax and claim refund or they can file "Letter of Undertaking" (LUT) and export without payment of Tax and claim Refund of ITC.

✅ Freelancers need GST Registration, which is PAN based and now linked to Aadhar too.

✅ The freelancer must keep proper records of all their transactions, including invoices, receipts, and payments.

✅ Other than GST, Freelancers also need to file Income Tax Return annually.

By BERI R & ASSOCIATES