Does a pvt ltd company need GST registration?
Please answer ASAP opening corporate account
Suggest any tips also if you all have
Needed only if yearly turnover is above Rs.20 lakh for services and above Rs.40 lakhs for goods. These are for normal category states. For special category states half of these amounts are the limits.
Special category states - Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim.
If u donât mind, for what purpose would that be for ?
Trading in F&O
Adding significant capital
Could you please explain it in Option Turnover terms
Thanks
Donât incorporate a company for trading purpose. Not allowed.
1 Like
You have a corporate account right?
Option turnover doesnât come under GST turnover estimation since you are not offering a product or service to third party. So a pvt ltd company can trade in derivatives without GST registration.
For a pvt ltd company to do this it needs to have NBFC license or be a stock broker or AP for a stock broker. Object clause in registration of the company with MCA should also clearly call out the broad purpose.
Could you all please guide me.
I have significant capital .
Need to save tax & write off all business related expenses.
Pay employees
So whats the way out , clearly registering as Pvt Ltd is not advisable as per above information .
You can do this as an individual also.
This too.
There are no separate provisions for private limited companies in income tax act. All are same. Only tax rates are different.
And yet you are relying on internet users. Donât you think you should consult an expert? Pay his fees and remove all ambiguity?
2 Likes
This.
1 Like
Starting that on Monday.
Getting all information before hand
1 Like
AP of a stock broker is the easiest route for a pvt ltd company. Unless its a pvt ltd company u donât have the extra tax benefit. Also if you take money out of the company u loose the extra tax benefit looking from the individual tax angle.
1 Like
My main motive for registering as Pvt Ltd was to save tax & write off business expenses.
My business expenses includes buying a car, office rent .
We can claim expenses in ITR-3 but we cannot claim purchase of vehicles as business expenses.
I do understand tax is 30% flat.
Can we claim the same in PARTNERSHIP FIRM similar to that of Pvt Ltd ?
@Jason_Castelino @t7support @nithin
Please do answer
Putting my plan to start Pvt Ltd Company on hold as it is not exactly legal & want to avoid any legal consequences.
I will just repeat again. Expenses are allowed and disallowed on the basis of whether they are business expenses or not. Any expense of personal nature cannot be claimed irrespective of the type of entity you have.
If you think you can buy a car and claim depreciation in a company, you are reading too much on the net. How is car going to help you in trading? Even if you buy it your company name, though you can claim depreciation in books of accounts, when total income is calculated for the purposes of taxation, such depreciation is to disallowed. So total income will be same whether the entity is company or firm or an individual.
The things that you read on net are not coming from CAs who do tax audit. If I am your auditor I will clearly disallow such expenses. The problems is we read what we wanna read. If itâs going to benefit us, we will think what we read is right.
If it was so, donât you think our finance ministry would have covered this loophole by now?
I agree is there a small advantage if you go for partnership firm. I have given my opinion here.
3 Likes
truer words were never spoken
U donât start a company to save tax. You start a company for higher goals. Besides if you factor in all the compliance, regulatory overheads and restrictions on how money can be moved in and out of a pvt ltd company structure, it doesnât appeal much for saving 5% tax.
3 Likes