Business Tax
4 months ago
I am an individual, my current income is around 5lac (rental+investments).
I'm opening a digital marketing company (service based). My target is to earn less than 10 lac yearly from that business. Only 2 people will be working in this company, me and my friend.
How can I save more tax? Should I open the company as a proprietor or LLP?
Since the turnover is less than 10lac, do I need to pay income tax on the business? Should I register for GST ? Let's suppose after expenses business's net profit is 5lac, what can be done to pay less tax for me & for the company.
A.Dear Sir,
It being tax related matter. You are advise to contact any auditor or chartered accountant for effective advise.
It being tax related matter. You are advise to contact any auditor or chartered accountant for effective advise.
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A.Dear Client,
As your main aim is to save tax then the most suitable form of business for you will ne Sole Proprietor. As you are expecting your turn over to be less than 10 lakhs there should be no issues with a Sole Proprietorship. You alone will be having the authority over the decision making so you will be handling the expenses as well as profits.
And about the GST registration, as you are a service provider and your turn over will be less than 10 Lakhs you do not need to register for GST. And about less payment of tax it is adviced to consult an accountant with your plan and your books as he will give you a proper insight on how to approach it.
Thank You
As your main aim is to save tax then the most suitable form of business for you will ne Sole Proprietor. As you are expecting your turn over to be less than 10 lakhs there should be no issues with a Sole Proprietorship. You alone will be having the authority over the decision making so you will be handling the expenses as well as profits.
And about the GST registration, as you are a service provider and your turn over will be less than 10 Lakhs you do not need to register for GST. And about less payment of tax it is adviced to consult an accountant with your plan and your books as he will give you a proper insight on how to approach it.
Thank You
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