[advice needed] i am freelancer- should apply for shopact?

Hi,

I am freelancer and doing blogging(article writing/ selling ads space from my blog to non Indian clients). Till now I am doing these all the transactions in my personal saving account. But I heard that doing volume transactions in saving account is not allowed/recommended.

 

I need your advice on should I apply for shop act and sole proprietorship and then open current account in bank?

Thing: I don’t have any shop (Working from home)

Thing2: I asked in bank and they told me that I can open current account without any such sole proprietorship registration.

 

What should I do? Please suggest.

PS: in my blogging and freelancing I have so many expenses like buying articles from number of people across the world, buying few other stuff to grow my websites etc. Do you think I can do these all stuff and show expenses in IT return without sole proprietorship registration and shop act license?

 

Thanks a lot in advance.

Replies (1)

Hello Tushar,

 

First of all Congratulations for your Unique business type and raising this kind of issues on this professional plat form.

 

You are not carrying any business so I think so you are not required to obtain any shop licence. You are proving serive and you should register for service tax (If your Gross turn over exceed 9 Lacs).

 

You are getting correct direction that, You should not do more transations in Savings. That may creat problem from IT.

 

And Yes you can take your all expenditure easily..just keep with you all the vouchers of the same expenditure.

 

More questions are wel-comed.

 

With Regards,

Bhargav Nathwani.

 

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