Consultant with Indian & foreign clients
TDS on consulting income vs zero-rated exports: SahiInvoice tells them apart
Mixed income is where compliance gets genuinely tricky: exports are zero-rated under LUT, while Indian payers deduct TDS under Section 194J that you need to reclaim. SahiInvoice flags each transaction for what it is.
This is you if
- Advisory or consulting income from both sides of the border
- Indian clients deducting TDS under 194J
- Filing both GST returns and an income tax return with credits
What usually goes wrong
TDS silently deducted
An Indian payer deducts 10% and you find out at year end. Without Form 16A tracked per payer, that credit is easy to lose.
Wrong treatment, wrong return
Treating a domestic receipt as an export — or the reverse — misstates both your GST return and your taxable income.
Two calendars to track
GST filings are monthly. TDS credits show up quarterly in 26AS. They rarely line up on their own.
How SahiInvoice handles it
- 1
Import everything
Domestic and foreign receipts land in one ledger rather than two disconnected spreadsheets.
- 2
Get TDS flagged automatically
SahiInvoice detects payer names that look like Indian entities and raises an alert so you chase the Form 16A while it's still easy.
- 3
Keep exports zero-rated
Genuine export receipts get LUT-referenced invoices; domestic ones are kept out of your zero-rated totals.
- 4
Reconcile at year end
A compliance view showing which receipts are matched, which lack proof, and which have TDS still to reclaim.
What changes
- TDS credits claimed instead of quietly forfeited
- Export and domestic income cleanly separated
- One place to answer 'where did this payment come from?'
The alert that says 'this payer looks Indian — ask for Form 16A' pays for itself the first time it fires.
Frequently asked questions
At what rate is TDS deducted on consulting or professional fees?
Indian payers generally deduct TDS under Section 194J on professional or technical services once the annual threshold is crossed. The deducted amount appears in your Form 26AS and can be claimed against your income tax liability.
Do foreign clients deduct Indian TDS?
No. A client outside India has no Indian withholding obligation, so genuine export receipts arrive without Indian TDS. If a payment shows a deduction, the payer is usually an Indian entity — which changes the GST treatment too.
How do I get Form 16A from a client?
Request it from the deductor after each quarterly TDS return cycle, then reconcile it against Form 26AS. SahiInvoice flags payers that look like Indian entities so you chase the certificate while the payment is still recent.
Is consulting income from a foreign client zero-rated under GST?
Where the recipient is outside India and payment is received in convertible foreign exchange, it qualifies as export of services and is zero-rated. Domestic consulting income is a normal taxable supply and must not be reported in your export tables.
General information about GST on export of services, not tax advice. Confirm treatment with your Chartered Accountant.
Other situations
Freelance developer
GST for freelancers on Toptal and Upwork: every payout, a compliant export invoice
Design studio & small agency
GST for agencies exporting services: multiple clients, multiple currencies, one clean set of books
Approaching ₹20 lakh turnover
The ₹20 lakh GST registration limit: know before you cross it
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