Can i earn commission from my friend for providing Forex signals ?

[BitoThomas]

HI everyone...I have been reading lot of threads about forex and I have some questions for forex traders and to someone who is a certified FEMA expert.

I have couple of friends who are living abroad in a country where forex trading is legal. I wanted to know can I provide forex signals to my friend living abroad and earn commission legally from him ? I mean can I show my earnings as a forex signal provider and show it as my income to the Indian government.

Please help.

Thanks

 

[howardroark]

HI everyone...I have been reading lot of threads about forex and I have some questions for forex traders and to someone who is a certified FEMA expert.

I have couple of friends who are living abroad in a country where forex trading is legal. I wanted to know can I provide forex signals to my friend living abroad and earn commission legally from him ? I mean can I show my earnings as a forex signal provider and show it as my income to the Indian government.

Please help.

Thanks

The ONLY certified FEMA experts are those people who run FEMA dept ...
It is completely legal to earn commission ... either by providing signals ... or by managing an Investor's account ... If they are living abroad ... If it is legal or not in that country ... as You do not come under legal boundaries of that country ...
Hope this helps ..........

 

[BitoThomas]

Thanks Howardoark !....Appreciate your reply...
If I earn commission from my friend for providing forex signals and he transfers the money to my Indian bank account, what would I show as my source of income both to my bank and to the Indian Govt ?

Secondly, Do I have to have any agreement with my friend to show that I am providing forex consultancy to him and the money which is being credited to my account is a source of that. For example, tomorrow if my bank account is being audited and I need to prove that this money which is being credited is a commission for providing forex consultancy, do I need some agreement with my friend like and an employer-employee has ?

 

[howardroark]

Thanks Howardoark !....Appreciate your reply...
If I earn commission from my friend for providing forex signals and he transfers the money to my Indian bank account, what would I show as my source of income both to my bank and to the Indian Govt ?

Secondly, Do I have to have any agreement with my friend to show that I am providing forex consultancy to him and the money which is being credited to my account is a source of that. For example, tomorrow if my bank account is being audited and I need to prove that this money which is being credited is a commission for providing forex consultancy, do I need some agreement with my friend like and an employer-employee has ?

You are neither responsible or liable to provide any details either to the bank or Indian Govt. You have to file your ITR. Hire any decent CA / auditor to file the ITR. They are professionals and they will know hot to file your ITR.
It is always advisable to have Service Level Agreement (SLA) to provide any service.

 

[BitoThomas]

What is a Service Level Agreement ? And which are the two parties involved in it ?
Would the 2two parties involved be me and my friend living abroad? If yes, then is SLA done on an Indian stamp paper or is this any document which is my friend living abroad has to make?

Secondly, Is it legal to earn commission from giving forex consultancy? Can I tell that I am earning this money by providing forex consultancy?

Please throw some light on this.

Thanks

 

[howardroark]

What is a Service Level Agreement ? And which are the two parties involved in it ?
Would the 2two parties involved be me and my friend living abroad? If yes, then is SLA done on an Indian stamp paper or is this any document which is my friend living abroad has to make?

Secondly, Is it legal to earn commission from giving forex consultancy? Can I tell that I am earning this money by providing forex consultancy?

Please throw some light on this.

Thanks

SLA is executed between the two concerned people / companies, mentioning the scope of the agreement.
It is legal to earn out of FX consultancy ... either by providing signals or by managing accounts .........

 

[BitoThomas]

Thanks....I know I am asking too many questions. I just wanted to be very sure before I venture and don't want to be on the other side of the law
I just went through some SLA online and found that is just an agreement on a paper between both the parties as your rightly mentioned. However, it has no legal approval to it...I mean it is not on a stamp paper. it is just a mutual agreement between the two parties.

Would this document suffice, if bank or the government wants to know where this money is coming from or what is my source of income which is coming from overseas?

Thanks

 

[howardroark]

Thanks....I know I am asking too many questions. I just wanted to be very sure before I venture and don't want to be on the other side of the law
I just went through some SLA online and found that is just an agreement on a paper between both the parties as your rightly mentioned. However, it has no legal approval to it...I mean it is not on a stamp paper. it is just a mutual agreement between the two parties.

Would this document suffice, if bank or the government wants to know where this money is coming from or what is my source of income which is coming from overseas?

Thanks

It is enough

 

[praful.arora]

Your CA only can guide you exactly and best for this.

 

[BitoThomas]

Thanks very much.