If a individual is registering a consultancy firm or company ( company A) and provides services to another company( Company B) , instead of working as a employee for company B, how the tax implications will change ?
1.
I understand, if the consultant fee is received in the name of company A, then the expenses incurred, inculding electricity charge, fuel charge, car maintenance, assistant salary, stationary, and every bill used to provide the consultancy can be deducted from the taxable income.
2.
I also want to know, if the consutancy is for Information technology services ( Software), does it attract service tax, if yes, how much ?
3.
What will be the pros and cons ( Specific to TAX) of doing the same service
Thanks in advance
Ashok
CAclubindia
