Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Itr for proprietorship business and export of goods

Tauseef (Self Employed) (69 Points)

10 April 2017

I am individual and I want to sale products on ebay.com (International Website). I purchase products from local market and sell it to on ebay. It will be treated as Retail Export. I will not sale any piece in India.
Kindly note payment will come through Paypal to Bank account where paypal charge their service charge. and then transferred to my bank account.

1. What are requirement to start this business ? like GST, VAT, TIn, IEC. for proprietorship.

2. Which ITR form will be applicable if I start this business also recieve salary from a company where no TDS deducted currently ?

3. Can I fill ITR 4 Sugam as presumptive Income declared at =8% from business ? If yes then waht is the nature of business in ITR4s.

Thanks

Reply
Follow
Share

12 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 10 April 2017

1. Depends upon the contract with E-bay. They provide all the details.

2. If you get just commission, ITR4 Sugam not applicable. Regular business with books to be maintained.

3. In case you receive money directly, and E-bay take away its commission, presumptive income can be declared.

4. If you can, wait till June end, only VAT registration will be enough, rather than ST & VAT

Tauseef (Self Employed) (69 Points)
Replied 10 April 2017

1. Ebay asking for business name, iec code and current account. 2. Ebay sends money to paypal in USD once goods sold and then paypal transfer amount after deduction of their charges. Ebay raising invoice in indian rupees on monthly basis for their commission and charge then we need to pay against that invoice to ebay india. What about the itr now?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 10 April 2017

Yes, in that case if turnover below 2 crs. in a financial year, income can be assessed under 44AD

Tauseef (Self Employed) (69 Points)
Replied 10 April 2017

But sir, this income from outside india, isn't it? So itr 4 sugam cant be apply. As per the instruction of income tax website.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 11 April 2017

"But sir, this income from outside india, isn't it? "

There is very fine difference between Income from outside india, and Income accrued outside India. Export earning by resident Indian, received in India is income accrued in India.

Ref: https://blog.hrblock.in/tax-planning/taxability-income-earned-india-vs-income-earned-abroad/

Tauseef (Self Employed) (69 Points)
Replied 11 April 2017

I read the article shared by you. Now coming to the last point what section i have to choose in itr 4 sugam if i recieved money from google adsense and ebay export. I mean section 44ad or 44ada ? I am salaried also so what is the nature business or profession?

Tauseef (Self Employed) (69 Points)
Replied 11 April 2017

Both of the income can be clubbed in sec 44ad in itr 4 sugam? I am confuse because i think one is business and one is profession. But both work i am doing in part time not full time.

Tauseef (Self Employed) (69 Points)
Replied 11 April 2017

If it can not be clubbed in 44ad then can i use one is in 44ad and another one is in 44ada. Basiclly can anyone use both of the section.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 11 April 2017

"Basically can anyone use both of the section."

Yes. One single form ITR4 (sugam) can be filed for all the 3 income as Salary, Business u/s. 44AD & Profession u/s. 44ADA

Tauseef (Self Employed) (69 Points)
Replied 11 April 2017

There is no need to maintain books, profit & loss statements or audits as per income tax form itr 4s. May income tax ask for purchase record and any other expenses because i am not maintainig.