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Tax to be payable for a pvt ltd company

MARTIN (MANAGER) (26 Points)

28 April 2012

Hi Good Morning ,

I am planning to register my PVT LTD Software Company in Bangalore . However, I just want to know the details of TAX that I need to pay every month on .

1.TAX on total income or TAX on profit which we are generating.

2.Howmuch TAX for foreign income .?

3.What are the precausions that I have to take Before/After registering the company .

4. Howmuch i need to pay for a registration of a PVT LTD company .

5. How to get the payment from foreign countries legally.

Please kindly provide me all the details . thanks in advance.

Thanks & Regards,

Martin Robert.

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5 Replies

V K Bajaj (Accountant) (1540 Points)
Replied 28 April 2012

You can incorporate a Pvt Ltd Co. based at Bangalore by following Rules thereof. Income Tax is payable quarterly dependidng upon your profits. TDS, VAT, Service Tax every month 1. Income Rate would be 30.9% on net taxable Income. 2. Income generated from Exports would be taxed at 30.9%. 3. You should not give any false or wrong information while registering the Company and after incorporating you must follow the rules of Taxation, Service Tax, TDS etc. etc. 4. Govt Fee, Professional charges and other expenses depends upon Authorized Capital, name of Company, Pvt Ltd or Limited etc. etc. 5. Payment from Foreigner Client shall land into your Bank Account and you will deliver the Invoice and other documents to your bank.

You will apply for PAN as soon as Company is Incorporated and addres (registered office address) on Form 18. You will be required to maintain various registers depending upon the size of your Company. Annual Returns with ROC shall be e-filed even if it is ZERO. All Directors will obtain DIN and One need to have DSC.

For further details please contact me at vkbajaj1950 @ yahoo.co.in.

MARTIN (MANAGER) (26 Points)
Replied 30 April 2012

Thanks for the details you provided through www.caclubindia.com .

Yet I need to have some more details .

I just wanted to get the company registered and I am not going to use anything regarding the VAT,Service TAX . Just going to install some software(Financial Product) at client place and get some fee for the same and involving website development.

1.With reference to the above business process, TDS,VAT,Service TAX are mandatory for me or not ,Please confirm.

2.Whats mean by registered office because I have taken an office space at a residential place at a house [ second floor ] - is it ok for company registration.

3. Authorized capital is Rs.1,00,000 /- .for PVT Ltd , two directors - can you plz tell me how much required to pay for the registration in Bangalore .

4. PAN is for the company or just for directors Please confirm .

5.With referecne to the About mentioned business process, what all the registers need to be maintained .

Kinldy provide me the details . and let me know where are you from . and your business profile ..

Thanks & Regards,

N.Martin Robert.

V K Bajaj (Accountant) (1540 Points)
Replied 30 April 2012

Dear Martin, I am based at Delhi (India) and can reach me at vkbajaj1950 @ yahoo.co.in or visit vkbajaj.co.in. You can start with Authorized Capital of Rs. 0.1 million if to start with PVT LTD. Two Indian Directors are must. Co and both directors should have PAN. One Director MUST to have DSC and second may opt. DIN (Directors Indentification Number) for all would-be-directors is also a MUST before you start for incorporation. You will pay VAT Service Tax etc. if applicable. Income Tax is payable on Profits and TDS would also come your way. Import Export Licence (or Import Export Code) also to be obtained to do import export business.

Registers to maintain are: Shareholders details, Directors details, Assets, Resolutions, Meeting of Board of Directors, Annual General Meeting. These registers should be maintained for the sake of history of Comapny and Assets. But as Authorized Capital would be Rs. 0.1 million so may choose to skip.

You can get your company registered with the Govt Office situated at Bangalore. The entie process is ONLINE so can be done from ANYWHERE.

My business profile available at wwwdotvkbajaj.co.in