Photography consultancy

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Photoguy

Personal

27 Points Posted on 14 November 2013

Hi, I am a salaried person and I am approached by a person to give him photography consultancy. The amount will not be too much - say below 4 lakh Questions: 1. Am I liable to pay service tax? 2. Do I have to register a company or get any tax related formalities done (Like TIN application etc)? 3. Can I instead add the amount in my other income and pay the tax accordingly. I am really perplexed. Please advice!

Replies (9)

CA.Vinita Gupta

Deputy Manager- Finance

2114 Points Posted on 14 November 2013

If the Professional Fees is more than Rs.30000/- then TDS would be deducted by the Payee before he makes payment to you u/s 194J @ 10%. You need not obtain the Service Tax Registration as you would be a Small Scale Service Provider. You must have PAN No.

CA Neeraj Bansal

Profession

83 Points Posted on 14 November 2013

1. No. You are not liable to pay service tax. 2.No requirement to get company registered. 3. Yes. This is other Income and you can show in the ITR as other Income. Tax Implication: Only pay advance tax on time on this income if it is required as per estimated total income for the year, if short.

Photoguy

Personal

27 Points Posted on 14 November 2013

Originally posted by : CA.Vinita Gupta
	If the Professional Fees is more than Rs.30000/- then TDS would be deducted by the Payee before he makes payment to you u/s 194J @ 10%. You need not obtain the Service Tax Registration as you would be a Small Scale Service Provider. You must have PAN No.

Thanks you for the quick reply. If I understand it correctly, if I charge Rs 60, 000, the payee will deduct the TDS (6000 at 10%). Will I have to pay any further tax when I add (54, 000) it as additional income to the normal salary I get?

CA Neeraj Bansal

Profession

83 Points Posted on 14 November 2013

It all depends on the tax slab applicable on you. If your fall in tax slab up to Rs 5 lacs, there is no requirement, otherwise need to be calculated.

Photoguy

Personal

27 Points Posted on 14 November 2013

Originally posted by : CA Neeraj Bansal
	It all depends on the tax slab applicable on you. If your fall in tax slab up to Rs 5 lacs, there is no requirement, otherwise need to be calculated.

Thanks. I got it. I am already in the 30% tax slab considering my salary - so I will have to pay as per that. But will I have to pay 30% or 20% (30% - 10% that I paid for TDS) of this amount?

CA.Vinita Gupta

Deputy Manager- Finance

2114 Points Posted on 14 November 2013

You have to add 60000/- to your income even though you receive Rs.54000/- after deduction of Tax @ 10%.

Since you fall into 30% tax Bracket so the differntial tax you have to pay as advance tax,

Photoguy

Personal

27 Points Posted on 14 November 2013

Originally posted by : CA.Vinita Gupta
	You have to add 60000/- to your income even though you receive Rs.54000/- after deduction of Tax @ 10%. Since you fall into 30% tax Bracket so the differntial tax you have to pay as advance tax,

Thanks. Ok. So I add 60,000/- to the income and attach the TDS certificate. So that I need to pay only 20% tax at the time of filing my regular IT returns. Total Tax I pay: Rs 6000/- as TDS. Rs. 12000/- as Tax while filing ITR.