New trading activity

Tax planning 451 views 3 replies

kiran

sr engineer

41 Points Joined July 2011

Hello All

I am planning to start a trading activity of selling bakery items in a small shop. For sales revenue of Rs.1000 my cost / purchase price would be around Rs. 500.

Expecting sales of Rs. 60000/- per month.

To add to this my monthly expenses ( Fix and Var ) would be around Rs.10000/-

This is my initial set up but I am not sure what i need from Finance , Book keeping , Accounting , Income Tax , or any other areas within taxes invloved that i need to take care ?

I need to know at an aggregated level what all is required at the operational level. Most importantly , i need to know how my Income Tax would be calculated. I can manage Licenses and other parts.

Thank you for your help.

Regards

Kiran

Replies (3)

Mihir

Wealth Manager

5293 Points Joined December 2008

You will require shop & establishment license. You may also require VAT registration. If along with selling bakery, you are planning to put up tables for customers to sit and eat, additional permission is required from local municipality. You will have to maintain cashflow statement since all of your sales will be in cash.

TKKKKKK

PRACTICING CA

3272 Points Joined June 2010

Book keeping is necessary. You can outsource services of CA for it. CA will calculate profit at year end and calculate applicable tax as per income tax slab. ITR 4 will be applicable to you.

You can also go with presumptive taxation and file sugam form. But I suggest you to maintain books of accounts to get true pictures of profit and loss.