Reg proprietorship

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Athif (Querist)

08 September 2011 Hi,

I have an intention to start my own proprietorship firm and try out my hand in software services. The doubts I have regarding proprietorship are as follows:

1. Do I need to register or have some sort of legal agreement to be done for starting a sole proprietorship software services company ?
2. For software services is service tax applicable and how is it calculated ? Any exemptions as starting a business on own can lead to losses too and paying service tax would be burdensome that way
3. I understand that a current account is needed for a business, do I need to furnish any proof of being sole proprietor at the banks or I need some legal documents to prove the claim ?
4. Which income tax form is applicable for the income derived from this business ?
5. I already have a personal PAN card, do I need to apply for another PAN card in name of this company ?

I hope these questions are not overwhelming and that you would be able to help me out soon.

Regards
Athif

U S Sharma

U S Sharma (Expert)

08 September 2011 1. Get a certificate of enlistment ( trade licence) from local municipal body, in name and style of business, showing yourself as proprietor, and place(address) of business mentioned.

1a) Similer way, get your business enrolled under profession tax.

2. Service tax is applicable after 10L and registration required after 9 lacs.

3. to open current account, bank will need trade licence, PAN card of proprietor, and a photograph of proprietor.

4&5) businss income of proprietorhip will be filed under the PAN card of proprietor and would be taxed in his individual hands.

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