Hello,
I'm an engineering student freshly graduate from one of the top institutes in our countrly. After passing out , I started a coaching center few months back. When I started it I thought it would be just my part time job, (as I'm preparing for exams of higher studies). Surprisingly, with in few months I got immense popularity for my teaching and hundreds of students joined my classes. Fee for each student is 30K. And I've about 200 students enrolled in my institute. So, I'm getting around 60lac per year. Thats huge!
The way I'm running it is:
1. I've recruited few local teachers and I'm paying them 30k per month. (from the fees I'm getting from students.)
2. I take signatures from these teachers every month on the pay slip.
Thats it! That is how I'm running so far. This was my first year. I didn't pay any taxes. I don't have a PAN card. I didn't take a pan card because, I read that I'll be charged 40% tax for my income(60L). That is simply outrageous! Almost half of my hard earned income. But I know I may have problems in future. So, I'm here to know what steps do I need to take to make everything the right way. Btw, I was only familiar with Income Tax, What is service tax?
Popularity of my institute is growing. I need to recruit more staff this year. Now, I'm little scared about what happens someone comes and raids me? I don't know how to minimise the 40% taxes. I want to take it to next level and I want to establish this as a professional coaching center (like many others, nation wide). I want to run it legally.
I heard from some of my friends that I need to setup somekind of company bank account ( I don't know what that is?). Can any one tell me what all things should I be familiar with?
I'm the only owner of this institute all others are just employees. I don't know how professinoal & well established coaching centers run their businesses. I'm ready to read & know any amount of information. Please guide me, how can I make my business professional & extend it & do not have any legal problems.
CAclubindia
