Allowable deductions from engagement fee as consultant

Tax planning 461 views 1 replies

smiley I am offered a job, which I can take as employee or as Consultant with annual compensation of Rs. 33 lakh. I would like to know/confirm factual status for my tax planning:-

1. Can I claim rent paid for moving to place of work-take up a house there since it is away from my presnt place fo working;

2. Driver and helper salary;

3. Depreciation on Car and Interest on Car Loan;

4. Any other allowable deductions please.

Also In view of total billing of Rs. 33 lakh in a year, would srvice tax be applicable ab initio or after I cross Rs. 10 lakh threshhold limit?

Replies (1)

You can claim all the expenses that can be shown as relatable to your profession.   So all the expenses covered by you plus expenses such as telephone bills, appropriate amount of food bills, electricity etc can be claimed. 

 

Service tax liability shall start only after the 10 Lakh exemption limit.


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