Asset management by a proprietorship company?

Tax planning 925 views 3 replies

Kunal Shah

Proprietor

25 Points Posted on 22 April 2012

Hi,

I have a question and I hope someone can help me here.

I am a financial consultant and intend to take up asset management. Now I am planning to open up a proprietorship company and will ask my client to deposit their monies in the account.

Now,
what are the legalities that I need to take care of?
how about taxation? will there be double taxation and if so how can I avoid it?
Is it possible to avoid double taxation if all my clients sign participatory notes and becomes participant in the said proprietorship company?

Thanks for the help, hope to hear from a learned one soon.

Replies (3)

Raman Aggarwal

Expert

363 Points Posted on 22 April 2012

i am not able to understand your question because their is no any clause for duoble taxation

Kunal Shah

Proprietor

25 Points Posted on 22 April 2012

Originally posted by : Raman
	i am not able to understand your question because their is no any clause for duoble taxation

I am sorry I did not framed the question correctly.

by double taxation I meant ->

Since, Proprietorship firm will be investing.trading in the commodities/equities there will be a tax levid on profit made by the company, and then the same company will distribute the profit made by fund tafter deducting the tax to the investors (which for the investor is income and taxable)...thus the income genrated by the fund will be taxed twice.

I hope I was able to explain the question.

Thanks