Hi all,

Any Cds who is interested to do business with India, can contact me or post his querry for a free consultation and advice. If you need any specific information you may also contact me at my business email at



or

Hi,
A question for you or anybody who can answer.
This is a long shot but-
I'm planning to outsource some of my production work to India. These jobs will be given to individuals on a freelance basis or to a company.
If I choose to go the freelance route, what is the best way to make payments there? As these jobs will be on a continuous basis I need to be able to pay the freelancers after each completed contract, without the recurring fees associated with drafts/wiretransfers etc.
I would like the payments to be made in Indian Rupees. I also need to be able to claim these payments as expenses for filing tax returns in Canada. Can I, as a Canadian citizen, open a bank account in India and have someone handle the payments for me?

I guess outsourcing to a company will make this easier...however, with freelancers I can keep the costs even lower.

I will be talking to my accountant(about the taxes and stuff)... but I saw this thread and thought I'll pop the question here.
Anybody with experience in this kind of thing?

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Hi Jake3D,

There is no problem in paying directly or thru someone to freelancers. However if you appoint one person to handle the payment issue thru your own account in India you can get a legal reciept of payments which can be attested by a notary in India and can be used in Canada for your tax filing purpose.

If you visit the website of proplusindia.com and see the list of consultants panelist you will find we have professionals handling such jobs already. We have full time CAs working for the company handling overseas accounts as well as some overseas companies are outsourcing their finance related jobs as well as other jobs thru porplusindia. However you can also appoint anyone of your choice to handle this job.

If you let me know what kind of work do you want to outsource I can give you more advice. If you need any specific information in this regard you can email me directly at my e-mail addresses.

Vijesh Jain


PS: As Canadian NRI you can open an INR account in India and perhaps show the expenses thru this account for filing tax returns in Canada. You need to check up with your Canadain CA about the expenses part for filing tax returns there. To avoid the fees and cuts assocaited with the payments the NR account is the best option.

Hi Vijesh,
Thanks a lot for the info. I'll check with my accountant before I get back to you.
Later then!

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Vijeshji, Just a correction . Jake is a canadian citizen and cannot open an NRI account. If he takes a PIO card, then he can open an account but under PIO rules. NRI accounts are for indian citizens only who are living abroad.
I got this info from SBI NRI branch and also from HSBC's NRI branch in Delhi.
Thanks

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Hi Mishtar India,

Many thanks for your querry.

As per my information Jake can open an account unless he has any special condition which disqualifies him to do so, as explained below. For details, please see the link of "India Bank"

http://www.indian-bank.com/procedur.htm

I am also giving below some information from the same link as follows:

NRIs are basically defined under two different statutes viz. (i) FEMA 2000 & (ii) Income Tax Act 1961

Under FEMA, 2000 Who is a Non Resident Indian (NRI) ?
A personal Resident Outside India who is a Citizen of India or a Person of Indian Origin is called a Non Resident Indian.

Person Resident Outside India:
A person who has gone out of India or who stays outside India, in either case

for or on taking up employment outside India, or
for carrying on outside India a business or vocation or
for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

Who is a person of Indian Origin?

A. For the purpose of availing the facility of opening and maintenance of Bank Accounts and investments in shares/securities in India

A citizen of any country other than Bangladesh or Pakistan, if

he at any time held Indian Passport or
he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)
the person is a spouse of an Indian Citizen or a person referred to in subclause (a) or (b) above

B. For investment in immovable property

An individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who

at any time, held Indian Passport; or
who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)

In case you or jake need more clarifications I can bring the same to the attention of the CDs. Please feel free to address your querries.

Thks

Vijesh

Good info vijesh , I learned something here about who is NRI and PIO.
Thanks.

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