Tax implications of a it trainer

451 views 3 replies

Hello,

I am planning to take up IT (software) Training as a independent professional.. so i will go to various companies to train people from time to time.

Questions:
1. Do i need to collect Service Tax from Clients?
2. Will the clients deduct TDS when paying me?
3. Will they give me Form 16A at the end of the year? But i may have 40-50 clients, do i need to run around collecting Form 16As from them at end of year?
4. Should i work as an individual or a start a pvt ltd or any other kind of company for this? I am just one person.. no employees.

Please advice...

Thanks

Replies (3)

1. You will have to charge service tax if your total receipts from all clients are expected to be 10L for the year.

2. They will deduct TDS if they pay you more that Rs 30000/- p.a.

3. You can access form 26AS online to find out the TDS deducted by them. (They should issue you the TDS certificates but in case they don't)

4. You can work as a proprietor [or team up with a professional like you forming partnership/ pvt ltd company(you can do this later once your workload increases)]

Thankyou for your response Ms Madhavi... some clarification:

 

"3. You can access form 26AS online to find out the TDS deducted by them. (They should issue you the TDS certificates but in case they don't)"

 

But i would have like 40-50 random clients... i shud collect TDS Certificates from so many of them at the end of the year? This is like Doctor or a Lawyer going around collecting Form 16A from every client he has worked with - which they don't really do. So..also do i really need TDS Certificate/Form 16A for filing IT returns .. isn't 26AS details enough?

26As is definately enough to file IT returns. But from documentation point of view I would suggest that you ask them to send Form 16 A to you as well. Original TDS certificates come in handy if there is delay in granting tax refund, if any.

 

(BTW most  Doctors/ lawyers always keep systematic records and maintain all documentes, the TDS certificates are sent to them by post.) 

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