Hi Sir,
I registered my Sole Company in November 2014. Since then I did not get any Current Account. I had all my transactions in Savings account. Now that I have a Current account, I now want to know what should be my next step? I am Very afraid of High service tax of 14% ! Does this 14% tax apply to ALL my Incoming Cash in my Current Account? What about the money I transfer to different bank account to purchase something so that I can deliver the same to my clients? Will I be applicable to Service Tax also on the funds which are going out of my current account? Another advise I am looking for is since I will be starting depositing funds in my Current account from now, what happens? I have not done any service tax filing for year 2014- 1015....What will happens now? One CA told me that he will form another company in my wife's name and I can do transactions in that account...hence Tax liability will be less...but my question is HOW will it be less? Why will there be more service tax liability in my Company formed in Nov. 2014 when there was no transactions in my Current account as there was NO Current account? Hope I make sense?
Please help me ASAP... I am in real dialemma, what needs to be done? Please advise. I want solution to Save as much Service Tax as I can...is there any way to do this?
Regards,
Reuben
CAclubindia
