IT & Professional Services
Professionals and IT businesses often bill clients in other states or other countries. Exports of services can be zero-rated under GST, client TDS has to be matched every year, and the choice between working as an individual, an LLP or a company matters as income grows.
What we help with
- GST registration and filing for professionals, including export of services under a Letter of Undertaking
- Reconciling TDS deducted by clients with Form 26AS and the AIS
- Income tax returns, including the presumptive option for eligible professionals
- Setting up an LLP or private limited company when the time is right
Points to watch
- 1Exports of services without paying IGST need a Letter of Undertaking filed each year.
- 2Keep inward remittance documents for foreign receipts; they support the export claim.
- 3TDS deducted by clients only becomes a credit if it appears in Form 26AS.
- 4Advance tax applies when TDS does not cover the full year’s tax.
General points, not advice for your case. Limits and dates change; we confirm what applies to you.
Exporting services
Services provided to clients outside India can qualify as exports and be zero-rated under GST, provided the conditions are met, including receiving payment in convertible foreign exchange. Most exporters file a Letter of Undertaking (LUT) each year so they can export without paying IGST and then claiming a refund. Keep the foreign inward remittance documents for each payment; they support the export claim.
Getting credit for client TDS
Indian clients usually deduct TDS from professional fees. That tax is yours, but only if it is reported correctly and appears in Form 26AS. Reconcile each client’s deductions every quarter rather than discovering gaps at return time.
Presumptive taxation or full books
Eligible professionals with receipts within the limit can declare income under the presumptive scheme for professions. It is simple, but it may not suit you if your actual expenses are high or you want to carry forward losses. Above the limit, books and possibly a tax audit are required.
When to form an LLP or company
Many professionals start as individuals and later form an LLP or a private limited company, to take on partners, sign larger contracts or raise funds. The right time depends on income, liability exposure and compliance appetite. We can lay out the trade-offs in numbers before you decide.
Running a business in it & professional services?
Call during office hours, or send a WhatsApp message describing what you need.
- No documents needed for the first call
- Hindi or English