Hello respected members. I need your guidance for a future situation that I would be in.
I am an individual under contract working for a US based firm. Now I am not an employee but an Independent contractor. I do some programming and data processing/ data mining for the company. Since my receipts are above 20 lakh I have registered for GST. and I believe I do not have to pay gst because what I doing comes under exports of services.
Right now I am well under the 50 lakh limit and file ITR under 44ada. In future, lets say in next FY i.e. 2022-23 months I am expecting my turnover to cross 1.5 crore but remain under 2 crores. Now I know I can not file 44 ADA for receipts over 50 lakh.
In next financial year I would enlist help of 3 people (total 4 including me). Now here I do not know how to proceed. my questions are below.
1. Should I open a small firm and pay those 3 people from it, if so what are my tax implications in lieu of GST,TDS etc?
2. If I open a firm/small company am I able to opt for section 44AD and pay tax on 8 percent of turn over or 44AD is not applicable even if I open a small company?
Thank You.
CAclubindia
