Private limited and it consultant

This query is : Open

Nithin (Querist)
Follow

18 November 2015 Hi Members,

I just registered my private ltd company, and I am the Managing director. Can I still work as an IT consultant (out of my company), and get into my personal current account (like a proprietor)?
Or am I not allowed to do it because they come under the same category?

Thanks,
Nithin

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
Follow

18 November 2015 You can work in your individual capacity and earn income. But the query is not so clear. Do you mean you want to work for the same company you have incorporated or some other companies ????

Nithin

Nithin (Querist)
Follow

18 November 2015 Thanks Shivaji garu for replying, and sorry that I'm not so clear.

1. I have a few clients in the US, to whom I want to render services through the new Pvt Ltd company I registered. This Pvt Ltd is between me and my partner.

2. I have a few other clients whom I work part time as an IT consultant, and they will be paying me and not to the company (since my partner won't be involved in this)

So can I be a Managing Director of a Pvt Ltd, and IT consultant (Sole proprietor) both at the same time? Am i clear?

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
Follow

18 November 2015 Okay. That is fine. You will provide service in your individual capacity and such income is taxable in your hands as a proprieoar or individual under your PAN ( Fourth alhabet is " P")
The Private company, headed by you will render service to US clients and such income will be taxed in the hands of Private company. If you receive any remuneration or sitting fee from the pvt company, it is taxable in your hands along with your income from the point no.1.

Private company is separately taxable under different PAN whose 4 the alphabet will be " C".
hope I have made the point clear.

Nithin

Nithin (Querist)
Follow

18 November 2015 Thank you!!

Ok, so it won't be a problem since its the same kind of business? (which my company is rendering, and which I (individually) am rendering).

Thank you again.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
Follow

18 November 2015 no problem. go ahead.. good luck...

Message likes : 1 times

Nithin

Nithin (Querist)
Follow

18 November 2015 Thank you Sir!! This solved my question.

Nithin

Nithin (Querist)
Follow

20 November 2015 Hi Sir,

Is managing director different from whole time director? Because I'm the main person who takes care of all the operations in the Private Limited company. My other friend is just like a non-active director.

Because I read that any whole time director can't be an employee or work somewhere else.

Just want to make sure I won't have that problem if I work as a Sole Proprietor, as well as Managing Director.

Thank you.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now