27 August 2016
Dear sir, Website Creation service is covered under the taxable service category "Design Service" hence whenever your gross receipt will cross to Rs. 9 Lacs you have require to take S.Tax registration No. and after it cross Rs. 10 Lacs you have to start to charge s.tax in invoice and pay the same to government. You can also apply for S.tax registration no. Voluntary.
27 August 2016
thank u sir...one more thing... sir, my 4 friends are doing business of websites....ie, they develop websites for their clients based on clients requirements such as matrimonial s,shop websites etc...they incurred expenses on development, purchase of domain etc...their main income is website development fee and annual renewal fee of website and main expenses are purchase cost of domain and server rent (as they bought server from an outside vendor).... As they are partners,they routinely contribute/take amounts to/from business in order to run it...is its an addition to capital or drawing from capital? or its better to account with partners current account?
If you have many routine transaction than you can maintain current accounts otherwise no need to maintain separate current accounts you can do transactions in capital accounts.
CAclubindia
