What does a freelance agreement set out?
A freelance agreement sets out the work a person will do, the fee, and who owns the result. It is a contract for services. It does not make the person an employee, and it does not make the two sides partners.
What does it set out?
| Term | What it should say |
|---|---|
| Work | The task, the deliverable, and the date |
| Fee | The amount, when it is invoiced, and which expenses are extra |
| Copyright | Whether the client takes an assignment, or only a licence. Without an assignment, the author keeps the copyright |
| End | How either side stops the work, and what is paid for work already done |
Whether copyright exists before registration is on the copyright page. This page is not a template.
Which tax rules still apply?
GST registration follows turnover. The lines are on the GST page. A company that pays a professional fee looks at section 194J. When that deduction applies is on the professional-fee page. The contract does not switch either rule off.
What is it not?
It is not a partnership deed, and it is not a vendor contract for a supply of goods. That supply is on the vendor-agreement page. Stamp duty, if the state requires it on the instrument, is not one national fee.
Frequently asked questions
Four questions cover employment, copyright, GST, and stamp.
Does the contract make the freelancer an employee?
No. A contract for services is not a contract of employment. Calling a person a freelancer does not decide the point if the facts are employment.
Does the client own the copyright automatically?
No. The author is the first owner unless the contract assigns the copyright. A freelancer is not an employee, so the employment rule does not hand the copyright to the client.
Must every freelancer register for GST?
No. Registration follows the turnover threshold, or a case where registration is compulsory below it. The lines are on the GST page.
Is there one national stamp fee?
No. Stamp on an instrument is state law. This page does not quote a fee.
Sources
The contract is under the Indian Contract Act, 1872. Copyright in the work is the Copyright Act, 1957. GST registration and tax deduction are separate statutes.