Hi, I am starting my own online website that provides resources on technical topics, commercial information, databases, newsletters, videos etc. Customers from India and across the world will use and pay for this service. No physical goods will be sold. 1) Can I run this business in my individual name ? 2) Can I use my existing Bank and S.B account for this purpose ? 3) If not, should I open a Current account and in whose name, since I am doing business in my name as individual? 4) I will be doing this business as an Individual, should I register for GST ? 5) Expected annual turnover will be less than rupees 10 lakh. Above what turnover should I register for GST ? 6) Do I need to charge any kind of tax for providing this service? If yes at what rate? 7) Customers from India and across the world will pay for this service. Is GST needed? 8) Any other Tax to be considered? Thanks, Ravi
Hi
1. Yes
2. Yes. But it is advisable to open a current account for clear distinction of transactions.
3. Individual name
4. You need to register under GST once your turnover crosses 20 lacs in a financial year.
5. Refer point 4
6. No, till you are unregistered under GST. Once you get register, you will have to charge GST.
7. Refer point 4 and 6
8. Only income tax shall be payable.
1. Yes you can do so.
2. Yes you can use. But for better understanding & you should open a current account.
3. Individual name.
4 & 5. As per GST Act you need to get register once your turnover cross 20 lacs .
6. No.
7. Only if turnover cross 20 lacs. Then get registered. After that you need to charge GST.
8. Provision related to Income tax.
Hello,
1. Yes.
2. Yes, you can use the Savings Bank Account.
3. You can open a current account in your name.
4 & 5. Only when you cross the threshold limit of Rs. 20 Lakhs.
6. After registration under GST, GST would be required to be charged.
7. Only when you cross the threshold limit of Rs. 20 Lakhs.
8. Income Tax.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
1. You can run the business in your name.
2. Currently you can use your SB Account as opening a current account in individual name is difficult.
4. You can wait for GST registration till your turnover reaches 20L.
5. No tax is required to be charged.
6. GST will not be needed
Hii
1 yes you can do any business in your proprietorship concern or in your name
2 for business saving account not recommended
3 you can open current account in your name also
in this no registration required
4 for export of services yes gst is must
5 for export of services no threshold limit
6 taxes applicable @18%
yes you have to charge tax other wise it deemed to be included in your receipts
7 in case of export of services you can claim refund of tax if not collected from customer but for this FIRC needed from bank
8 from above information no other taxes applicable
Yes you can do this business on individual name.
It would be better if you use current account as far tax law is concerned there is no issue but sooner or later bank will advice you to open current account and it is also advisable from business purpose.
You can first register in GST and based on that certificate you can take bank account on your business name.
If you are doing it on your own website you need GST only after 20 lakh if doing via some aggregator you need GST.
No tax needs to be charged with invoice.
No.
Just Income tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hello Sir
1. Yes
2. Yes you can use but Current account is more convenient
3. You can open in your name.
4 & 5. For GST registration turnover limit is more than 20 Lacs
6. No
7. Till 20 lacs no need of that charge afterwards you need charged @18%.
8. Income tax.
1. Yes of course
2. Open separate current account
3. Fix some trade name for it and open current account in trade name
4. If the turnover will cross the threshold limit of Rs.20 lacs
5. 20 lacs
6. Sales in india will be taxable @18% and to foreign clients it will be exempt
7. point no.4
8. Income tax
Thanks everyone for your valuable answers. I have a follow up question. What is the procedure to open a Sole Proprietor company?
Do you means one person company?
You may work in your own name. However, if you want to work in a separate business name, you may register a company name through registration under shops & establishment act or Udyam Registration.
For the Sole Proprietorship Firm, there is no government registration required. Having a PAN would suffice. Additionally Shop & Establishment registration could be taken.
For One Person Company OPC, would be required to be incorporated through MCA.
There is no government registration needed in order to start a sole proprietorship business in India. You don't have to go to an online registration portal and fill up a form or submit any documents. However, you do need to open a current account with a bank in the name of the business.
You can get yourself registered as Small and Medium Enterprise (SME) under the MSME Act. The application can be filed electronically. Although it isn’t compulsory to register as an SME, it is highly beneficial, especially at the time of taking loan for the business. The Government runs various schemes for SMEs where loans are provided at the concessional rate of interest.
You can get yourself registered under GST if your annual turnover is more than Rs. 20 lakhs.
This license isn’t mandatory at all places, but it is required to be obtained according to the local laws. It is issued by the municipal party and is issued on the basis of the number of employees.
It is advisable to take a phone consultation for detailed discussion.
- No separat registration required for sole proprietorship. For income tax, business and proprietor are different but legally it is an individual.
To start a sole proprietorship in India, all you need is a bank account. Go to a bank, open a bank account in the name of the company that you wish to operate in - and you are on. Manage your taxes in the manner that you manage your own. Once you get to a certain level, you will have get certain things registered etc
You don't need to necessarily open a company just start your business.
You can take a phone consultation and I'll be happy to help you with your tax and compliance matters.