How to calculate my income in proprietership firm

Tax queries 217 views 9 replies

Vivek Bhatt

Proprieter

25 Points Joined February 2017

Please clarify my doubt - I have recently opened a new proprietorship firm to carry out my business. I do understand that the profit of my firm is my income. However, I also provide individual marketing service in small scale(not related to my firm) to other companies for which i receive check payments.

My question is: Will the total income of mine be calculated by clubbing my firm's profit with the individual payments i receive for my marketing works and then the tax will be calculated?

And will there only one tax return filing ( me and firm together) or I as an individual file tax return separately and there is a separate return for my proprietorship firm?

Please clarify....

Replies (9)

Prashant Sharma

389 Points Joined May 2014

There will be only one return for both income.

You need to show both income in your tax return .

There is no separate return for individual or proprietorship.

Vivek Bhatt

Proprieter

25 Points Joined February 2017

Thanks for quick reply! Here is another doubt...if you could share some information...

As stated before:I have recently registered a proprietership firm to carry out service based business activities. I will register for service tax when the revenue will come near the 9Lakh mark.

On the other hand i also carry out online promotional activities for companies located outside India and they pay me in US dollar check ( as advertising fees). ( Check comes on my name)

My point is if I take a service tax code for my proprietership firm will I have to pay service tax for the US dollar checks that I receive from my own pocket? The advertising fees that I receive come from US and I have no control to negotiate in order to make them pay service tax.

Prashant Sharma

389 Points Joined May 2014

branh of that company in india

Prashant Sharma

389 Points Joined May 2014

are you doing promotional activities in india or in foreign

Prashant Sharma

389 Points Joined May 2014

If you are providing services in India than service tax will be applicable no matter about status of service receiver.

Prashant Sharma

389 Points Joined May 2014

if i am wrong any can correct me

Vivek Bhatt

Proprieter

25 Points Joined February 2017

No , it is a US company and the work involves selling of products in the US. I create web pages and online advertisements, when people click on the ads and buy from the company's website in US, i receive the commission as advertising fees. All orders and selling happen in US.

Prashant Sharma

389 Points Joined May 2014

No sevice tax will be applicable

Juhi Verma

52 Points Joined January 2017

Hi Vivek,

Congrats on your new venture! I can guide you with the process for the paperwork related to your calculations. Either share your contact details or call me on 869-195-0000.

Thanks.