Tax question

Tax queries 576 views 4 replies

Martin King

Director

81 Points Joined August 2010

Hi,

I have recently started an online software support business in Delhi. We are providing our services to foreign countries. Its been around 6 months since I started this business. I have not filed the tax yet as I have no idea how to do that.

Its a partnership firm and I have several questions in my mind.

1) I want to know the tax rate & some tricks so that I can save the tax ? I have heard that if I show some expenses, that will save tax.

2) Can I Transfer my saving account money to Firm's current account ? ( Will that be considered as an asset to my firm? )

3) If I transfer my current account's money to my saving account , how will that be considered?

4) Will it be a good idea If I use the current account for my personal shopping?

5) Can I purchase a car for myself by using the current account of my firm ?

Replies (4)

CA. Saurabh Garg

Chartered Accountant

41 Points Joined September 2009

Dear Sarvesh

You didn't mention the size of the revenue so it is difficult to answer your question......

I Saurabh Garg Tax Consultant, I will be ready to take care of all your legal & tax compliance.

You can reach us at +91-9990455520 or mail me your query at cagarg.saurabh @ gmail.com.

Regards

CA Saurabh Garg.

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Hi,

Have you started your business during the current Financial Year i.e. between 01.04.2011-31.03.2012. If yes then you would not worry about the tax return. There’s still time till 31^st july if your receipts from business does not exceeds Rs.60lcas. IF they are above then the time is till 30.09.2012. If you had started your business during F.Y.01.04.10-31.03.11 then you will require to file your return before 31^st march, 2013.

The tax rate for firms is 30%. Yes you can show the expenses that you have incurred from your income you have earned. This will be treated as an deduction from your income.
Yes you can do that. This will be treated as the capital introduced by the partner in the firm. The Cash/bank balance of the firm will get increased.
This will be considered as Drawings of the partner from the firm’s money & will be deducted from the capital account of the partner.
It will be good. This again wud be considered as drawings of yours.
Instead of showing the car for yourself, you can treat this as an asset of the firm by taking the car in the firm’s name & claim depreciation on that. If you purchase it from your own funds then you can treat this as capital introduction in the books of the firm.

Martin King

Director

81 Points Joined August 2010

Thanks Mr Garg. Our Monthly income is around 4-6 Lacs.

Originally posted by : CA. Saurabh Garg

Dear Sarvesh

You didn't mention the size of the revenue so it is difficult to answer your question......

I Saurabh Garg Tax Consultant, I will be ready to take care of all your legal & tax compliance.

You can reach us at +91-9990455520 or mail me your query at cagarg.saurabh @ gmail.com.

Regards

CA Saurabh Garg.

CA. Saurabh Garg

Chartered Accountant

41 Points Joined September 2009

Dear Sarvesh

As you mention that your revenue size is about 48 lac to 72 Lac as a result your firm will fall under various compliance of Income Tax & Service Tax laws. Some are mention for your reference:-

1 Tax Audit u/s 44AB of the Income Tax.

2 Payment of Service Tax.

3 Deduction of TDS and filing of TDS & Service Tax Return.

4 Many more.......

If you like I will be ready to take care of all your Legal & Tax compliance and Tax planning.

You can reach us at +91-9990455520 or mail me your query at cagarg.saurabh @ gmail.com