FIRC and taxes for Indian remote contractors
FIRC, LUT, GST, presumptive taxation (44ADA) for Indian remote contractors earning USD — what you owe, what you can claim, and how to file without overpaying or under-disclosing.
FIRC and taxes for Indian remote contractors
Status: Outline — full guide coming soon. Get notified when it ships →
What this covers
- FIRC explained: what it proves, when you need it, and how to keep a clean chain
- LUT (Letter of Undertaking) for zero-GST export of services — when to file, how to file
- Section 44ADA presumptive taxation — when it applies and when it doesn't (income > 75L)
- The deductions a remote contractor can claim (home office, equipment, software, dev tools)
Why this matters for Indian devs going remote
Most Indian remote contractors either overpay (paying full GST on exports because they didn't know LUT exists) or under-disclose (no FIRC continuity, then panic at scrutiny). The legal frame is generous to genuine remote service exporters — but only if you set up the paperwork from invoice #1. Catching up later is painful.
Outline
FIRC explained
TODO — what an FIRC is, when ITR/RBI/bank ask for it, how to retrieve it, how to keep a clean per-invoice chain.
LUT for zero-GST export
TODO — eligibility (export of service, payment in foreign currency), filing on GST portal, annual renewal.
Section 44ADA presumptive
TODO — eligibility (gross < 75L), the 50% deemed-profit rule, when not to use it (high actual expenses).
Deductions a contractor can claim
TODO — home office (proportional rent/utilities), equipment (laptop, monitor, chair), software/cloud, internet, dev tools, courses.
Common mistakes to avoid
- Not filing LUT and paying 18% GST on export invoices (refund-able but painful)
- Mixing personal + business in one bank account
- Treating Section 44ADA as automatic — it has limits
Templates / examples
TODO — an invoice template that satisfies FIRC + GST requirements, a deduction checklist, and a year-end tax-prep checklist for a remote contractor.
Related guides
- Remote contractor invoicing with Deel and Wise
- Negotiating a remote offer from India: USD band, equity vs cash
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