Dear Members,
I have a proprietorship firm in delhi which deals in IT solutions. We make websites and softwares. The proprietor is my mother.
Just recently we have approached a nearby university in order to conduct some summer training programs for their students. We will use their infrastructure such as classes, training rooms etc and in lieu of which we will share our revenues with them. We expect a total revenue of Rs 20 to 30 lakhs from this programme. Students will pay for the fees using online gateway, cheque, cash or direct funds transfer to our company's account.
Now the question I have is about the taxes which we will incur on this activity. I want to know what all taxes we will have to pay to the gevernment (income/service tax etc.) and is there any way we can save this tax because we are required to pay a hefty amount to the university. If we pay (say 30%) towards taxes then the profit margin will be nearly zero.
Please help. Thanks in advance!
CAclubindia
