What is a proper way to run my business?

Hello,


I'm an engineering student freshly graduate from one of the top institutes in our countrly. After passing out , I started a coaching center few months back. When I started it I thought it would be just my part time job, (as I'm preparing for exams of higher studies). Surprisingly, with in few months I got immense popularity for my teaching and hundreds of students joined my classes. Fee for each student is 30K. And I've about 200 students enrolled in my institute. So, I'm getting around 60lac per year. Thats huge!

The way I'm running it is:

1. I've recruited few local teachers and I'm paying them 30k per month. (from the fees I'm getting from students.)

2. I take signatures from these teachers every month on the pay slip.


Thats it! That is how I'm running so far. This was my first year. I didn't pay any taxes. I don't have a PAN card.  I didn't take a pan card because, I read that I'll be charged 40% tax for my income(60L). That is simply outrageous! Almost half of my hard earned income. But I know I may have problems in future.  So, I'm here to know what steps do I need to take to make everything the right way. Btw, I was only familiar with Income Tax, What is service tax?


Popularity of my institute is growing. I need to recruit more staff this year. Now, I'm little scared about what happens someone comes and raids me? I don't know how to minimise the 40% taxes. I want to take it to next level and I want to establish this as a professional coaching center (like many others, nation wide). I want to run it legally.

I heard from some of my friends that I need to setup somekind of company bank account ( I don't know what that is?). Can any one tell me what all things should I be familiar with?

I'm the only owner of this institute all others are just employees. I don't know how professinoal & well established coaching centers run their businesses. I'm ready to read & know any amount of information. Please guide me, how can I make my business professional & extend it & do not have any legal problems.

Replies (3)

firstly take sign from teachers on revenue stamp. You have to take PAN Card and file return maxmimum slab rate is 30 % with 3 % cess and its depend on your income or profit. Yes you should open a current account in institute’s name with any bank. Service tax is applicable or commercial training or coaching classes if the gross receipt in current year cross to 10lac than you are liable to charge service tax to students.

Originally posted by : Pankaj Arora


1. firstly take sign from teachers on revenue stamp.

2. You have to take PAN Card and file return (maxmimum slab rate is 30 % with 3 % cess and its depend on your income or profit.)

3. Yes you should open a current account in institute’s name with any bank. [Service tax is applicable or commercial training or coaching classes if the gross receipt in current year cross to 10lac than you are liable to charge service tax to students.]

2. Ok I'll take a PAN card. But how to file return? What is the procedure?

3. I already have a personal savings bank account. Do I still need current account? Also, why in the name of the institute? What advantages would I get by opening current account?

 

you are running institute like a business. That’s why you need to open current account of all transaction receipt or payment to party’s. you should meet the CA of your city regarding your return query and Business query..

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details