Forum Moderators: martinibuster
What I have done:
1. I have applied for a trade license for software and web development service. This way I can also work on development project if I want.
2. Getting a current account and forming a sole prop. in my mother's name making HER the owner of my websites.
Problems:
1. The service tax is apparently exceptionally high - 20% of profit. The accountant told me that the reason for this tax is that I am providing a service on the web and the earnings are related to that service no matter from advertising. I HAVE TO pay the service tax.
2. After the service tax there is the income tax which will be paid on the income. This is not such a big problem as there is a lot of expenditure and I will be putting everything on the company account.
Is this the right way to do it? If anyone has experience in this please help me out. The profit range is around $1000/month. The reason I am doing this is because I have a good job which I don't want to leave that as of now.
Looking forward to some replies.
Regards,
R
I also approach in the same way. Beside that, I have a small electronics hardware manufacturing company and those are on sale through internet. I have TL, SSI registration, and other formalities like CST etc. long ago before AdSense was born.
I try to show, as per my tax consultant, as much expenditure as possible under my company overhead. And I prefer to keep bills for most of them, if possible, like if I buy Rs. 500/- petrol for my car for own personal use, I can show this as an official expenditure (like I have travelled a lot to write a genuine article)
In this way, there is so much...all I buy and get bills under my company overhead.
This was the profit margin is taken to lower and IT is applied on that.
What is the SSI registration, and CST? Can you please elaborate. I guess because of the electronics manufacturing unit you require more complainces but for me is just the trade license and the current account okay to run the sole prop.?
Regards,
R
CST is central sales tax, there are other state taxes alos, but most are replaced by VAT.
Alongwith that I also have other certificates too.
My site is around 5 years old, and including AdSense and my company in total, it brings me around $4500-$5000 per month in total, but at the cost of a lot of sleepless night in the last few years, for my company. My company is around 12 years old now and I have full time employee there.
I did sleepless work at my site, even when AdSense were not there...just to promote and showcase my products on the net.
I think service tax is not applied to service rendered in USA if you a Indian Citizen.
You can save on tax by asking your bank to issue an "Foreign Inward Remittance Certificate" for each payment.
You can save on tax by asking your bank to issue an "Foreign Inward Remittance Certificate" for each payment.
is it applicable to Income Taxes in India?
More info will be appreciated.
This is First time I am dealing with Income Taxes in India.
Questions:
so what is use of
"Foreign Inward Remittance Certificate"?
Which country wont like to have more of $$$?
Services rendered to Google, Inc, CA, USA won’t attract any service tax.
Also GoluGolu is too cautious due to high earnings per month. i think everybody in India should for this type of legal arrangement if earnings per month is higher than USD 1000 a month.
