16 July 2009
I am working as a consultant for a foreign based company. They have project in india and m working on that. I m providing my services through net (preparation of documents & review). I will submit my invoice to get payment. under what heads can i put my expense and is it necessary to have bills for them? like hiring a typist or local conveyance? which form to be used for income tax. my agreement is of 6 mths. previously i was working as a permanent employee in india. pls guide
16 July 2009
As per Sec 44AA services provided by you will come under technical consultancy. So if the total receipt in previous year exceeds the amount of Rs. 1.5L then you need to maintained the proper books of accounts i.e Cash book, Journal register, sales bills & original bills of expenses.
In othercase you don't need to maintained the books of accounts.
But please note you can not claim any expenses for which you don't have bills.
Till jun 09 i was working as a permanent employee in one of the private sector company. only this month i have quit my job to take up this work as a consultant. now there are few things for which we dont get bills like local coveyance (auto), typing work to some computer shop which is not registered etc. how can i claim these expenses? kindly let me know if any site is there on which i can get full information. under what heads am i eligible to put my expenses?
17 July 2009
So please prepare the cash expenses voucher for each expenses & take the signature on that from the vendor. I agree for conveyance you don't have the bill. So just maintain the cash book & make the necessary entry in that for such amounts.
CAclubindia
