Proprietorship firm and applicable tax, employees
This query is : Resolved
05 May 2021
Hi,
I am resident of India and having my own proprietorship firm. The firm is registered and as a trade name and also GST# is obtained.
The proprietorship firm is registered to provide software/hardware consultancy. Currently I have a client who is US based. For this company I provide the consultancy and they would pay to my India account opened in the proprietorship firm.
Currently I am alone managing it but due to the work load and getting into contract with few other companies as well so I am planning to hire few employee/freelancers may be around 3 members. So I have some queries and need to know the process for the firm to follow
1. If I hire someone as employee do I have to issue offer letter and CTC details
2. Should I deduct the Tax, if the total payment for person in a year may exceed 10lac. What is the minimum wages ?
3. If I hire them as consultant should I still deduct TDS
4. Do I required TAN and legal process to follow
5. How do I pay them monthly ? can I use my firm account to pay them and show under the expenses ?
Please help
I am resident of India and having my own proprietorship firm. The firm is registered and as a trade name and also GST# is obtained.
The proprietorship firm is registered to provide software/hardware consultancy. Currently I have a client who is US based. For this company I provide the consultancy and they would pay to my India account opened in the proprietorship firm.
Currently I am alone managing it but due to the work load and getting into contract with few other companies as well so I am planning to hire few employee/freelancers may be around 3 members. So I have some queries and need to know the process for the firm to follow
1. If I hire someone as employee do I have to issue offer letter and CTC details
2. Should I deduct the Tax, if the total payment for person in a year may exceed 10lac. What is the minimum wages ?
3. If I hire them as consultant should I still deduct TDS
4. Do I required TAN and legal process to follow
5. How do I pay them monthly ? can I use my firm account to pay them and show under the expenses ?
Please help
05 May 2021
1 Give simple appointment letter no need for CTC.
2 TDS oñ salary applicable if payment exceed 5 lacs.
3 TDS applicable only if Tax audit applicable to you.
4 Yes TAN required.
5 Yes you can do so.
2 TDS oñ salary applicable if payment exceed 5 lacs.
3 TDS applicable only if Tax audit applicable to you.
4 Yes TAN required.
5 Yes you can do so.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Cgst asmt - 10
- E-Invoice applicability related question
- RELATED TO ITR OF POLITICAL PARTY
- CAN a GSTIN registered under rule 14A opt for composition scheme without withdrawal from rule 14A ??
- PTEC-payment
- Employee claim Expnese Invoices
- Rejection of the application for the registration of a society in Andhra Pradesh state
- REFUND OF TDS CLAIM
- How to file form ITR-B Detailes manner as per rule 12AE income tax rules,1962
- Do i need to file ITR for getting money from mother
- Fy 22-23 --> tyed more in gst 3b vs 2b, any interest?
- INCOME TAX QUERY FY25-26()\
- Query regarding applicability of UDIN on MCA forms signed using DSC by a Chartered Accountant
- GST ON PERSONAL MOTORCAR SOLD
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Spice form, ? mark comes in address
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
