Running a small business. Tax Queries??

m U d I t (student) (108 Points)
Replied 12 July 2011

1) IF SHE HAS PROFIT OVERALL THEN SHE HAS TO PAY TAX.

2&3) IT SEEMS SHE EARNED 260000 (500000-(5000*4*12)). FEMALE SLAB IS NO TAX UPTO 190000. SO HER TAX LIABILITY IS 7210.

4) AS AN INDIVIDUAL

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 12 July 2011

Originally posted by : Malaiselvan

Hi All,
I am very new to this forum.

I writing this post since I have some queries related to TAX.

My wife is running a small business and following is the business descriptttttion.

She is basically a web developer and she get projects from various media. She rented a small place and she employed 4 resourses. She is paying around INR 5,000/- per month for each employee.

- Profession tax registration required, deduct PT from employees and submit.

She started this firm on last year. The annual turnover is around INR. 5,00,000/-. She is having a bank account in her name (personal) and all the money are pooling into that account. She is also having a PAN card on her own name.

- Income return should be submitted after calculating Profit and Gains of business and profession

The firm is not yet registered and we are trying to register under RoC

- Single owner can not form a firm/ company, get an certificate of enlistment from local municipal body at your business address ( trade licence)

Following are my queries:

1. Does she need to pay TAX? (Obviously yes)

- yes, she has to pay a) profession tax, income tax, and above 10L service tax

2. For what amount she need to pay TAX? For the turnover or only on the profit?

- for service tax, gross turnover, for incometax , on net profit only

3. What is the percentage she need to pay as TAX?

- as per tax slab it valies 0-30%

4. Does she pay TAX as an Individual or as a Firm?

- as an individual

Need your advice on this.

Thanks & Regards
Malai

1 Like

CA,CS Mehul Bhanawat (Job) (204 Points)
Replied 12 July 2011

SIR,

I just wnat to ask about - Profession tax registration reqirement ?

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 12 July 2011

Originally posted by : Mehul Bhanawat CA,CS-FINAL
	SIR, I just wnat to ask about - Profession tax registration reqirement ?

every self employed has to get enrollment, and registration for deduction of profession tax from employees who are drawing salary over 3000/- per month, and remit the same to state govt.

Malaiselvan (Programmer) (38 Points)
Replied 12 July 2011

Hi Sharma,

Thanks for your reply.

I have few more queries after reading your replies.

1. We are in TamilNadu and where can I go and register for Prefessional Tax? Is there any online portal?
2. I can only exclude employee salary? What else can be excluded from the annual turnover?
3. You said "after calculating Profit and Gains of business and profession". What do you mean by business and prefession?

I understand single person cannot form a company. This is a different story I will take up in a new thread in the respective forum.

Thanks & Regards

Malai

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 12 July 2011

eligible deductions from business

rent/ electricity/ machinery maintanance/ postage/printing & stationary/ telephone and internet/ travelling/ advertisement/ taxes/ depriciation on fixed assets.

to register yourself , visit commercial tax office

https://www.tnvat.gov.in/

https://www.tn.gov.in/dtp/professional-tax.htm