Gst on consulting income and payment of advance tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2017 Hi
I'm a software engineer by profession and I left my job in Feb 2017 and started trading in F&O from April this year. However, after 6 months of heavy loss I stopped doing F&O trading. I was approached by a startup to consult for a project with an agreement that I would be paid a consulting fees if they win the project. The company has won the project and they have also offered me a job which I'm going to start from January 2018. They've offered to pay my consulting fees as bonus or salary if I so choose. My income/loss details are as follows:

Income from F&O: - 5 lakh (Turnover: 24 lakh)
Consultancy Income: 10 lakh (Can be taken as salary/bonus)
Income from salary: 8.6 lakh

My income so far for this year has been 0 and all income will come in the last 3 months of the financial year. So my questions are:

1) Is it better to take the consulting fees as salary? As a consultant I can show various expenses like internet bill, phone bills etc. However, do I need a GST registration since my turnover from F&O has already crossed 20 lakh? Does F&O turnover come into consideration when calculating the turnover threshold for registering for GST? If GST registration is needed then I'll also have to charge and pay a 18% GST which I would prefer to avoid if possible.

2) I've not paid any advance tax so far as I was not sure of any income. If I pay advance tax now I understand there will be penalty and interest charges. Is there a provision of rebate in that as I was truly not sure of any income for the year.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2017 1 F&o income declare 6% profit and opt 44AD.
Take consultant income as such and opt 44ADA declare 50% profit.
2 F&o turnover will not be considered for GST registration.
3 Consultant turnover less than 20 lacs GST registration not required.
4 Advance tax can be paid without any penalty for 44AD before 15th March in single instalment.

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