Can Indian Citizen living in India work for USA company

[vkforu]

Hi,

I am living in India and I got an offer to work as a freelancer for a staffing company in USA. Can i work from India, if yes how will be the payments made.

1. I am providing service for their company on their company name.
2. I don't have company in India. How will i get paid.
3. Is it legal for a USA company to transfer money directly to my Indian Bank Account.
4. If the money is transferred directly how will be the tax calculated.

Kindly advise.

THanks