I am an NRI, working in middle east.
I am planning to start online instructor-led trainings.
I don't currently have any business registered in India. The students will be mostly from India or could be any other country.
My queries are as follows:
1. Is it possible to do this legally without registering a company?
2. Can I link my NRO account through some Indian payment gateways(e.g. instamojo or ccavenues) to collect Fees. If yes, what could be tax issues.
3. Also what are income tax or professional tax implications, if money is deposited in NRO account and How can I pay it ? Currently I don't have any other income in India.
4. Is there any taxes e.g. gst tax etc I need to collect (assuming total revenue is more than 50 lac in year) from students.
5. How do I provide payment receipt to students or can I invoice them based as an individual ?
1. Yes, it is possible to do so legally. But it is highly recommended you register a business in India. or as a franchise or branch of your middle east parent company. The answer lies in your second question.
2. You are a non resident, and want to earn Income from India. Your entire income is chargeable to tax, you will have to pay that anyways. And if you don't have a taxable entity in India, two things will happen:
You will have a hard time convincing the gateways to accept your contract, since you are a non resident, and the payees should deduct TDS from your payments. I'm considering that would not be too easy for your students.
3. You will have to register for profession tax (currently GST) for the state you want your business to run.
4. You will be liable to GST once your turnover exceeds Rs 20 Lakhs
5. In view of the recommendations made above, it would be beneficial for you to register an establishment in India and bill your students using that establishment.