Consulting business for claiming tax/gst exemptions

[abhiaj98]

I was thinking of registering and reporting freelancer/consulting income on the side. What is the minimum amount I would have to show to make it seem legitimate? Do I have to apply for a GST number?

What all can I claim with a consulting business? Aim is to claim tax/gst exemptions on rent, travel etc using this business.

 

[Anupama_Jha]

I was thinking of registering and reporting freelancer/consulting income on the side. What is the minimum amount I would have to show to make it seem legitimate? Do I have to apply for a GST number?

What all can I claim with a consulting business? Aim is to claim tax/gst exemptions on rent, travel etc using this business.

The tax/gst aka input tax credit which u get isn't withdrawal to bank account. That can be
used only to pay income tax.

It's like itd wallet🙂

 

[akiratoriyama]

The tax/gst aka input tax credit which u get isn't withdrawal to bank account. That can be
used only to pay income tax.

It's like itd wallet🙂

How can you pay income tax using Input tax credit? I thought you can only set it off against gst payment.

 

[Anupama_Jha]

How can you pay income tax using Input tax credit? I thought you can only set it off against gst payment.

Arre I meant to say same, not CA. The core truth is not withdrawl to bank which might deny OP's motive

 

[abhiaj98]

The tax/gst aka input tax credit which u get isn't withdrawal to bank account. That can be
used only to pay income tax.

It's like itd wallet🙂

Hm
What if I make an llp and invest a good chunk of my money through this llp. It will generate profits every year, may have to do some MF unit redemptions. And against that profit I can claim expenses.

One thing I am not sure here is how is capital gains tax treated for llps

 

[xsourabh]

I was thinking of registering and reporting freelancer/consulting income on the side. What is the minimum amount I would have to show to make it seem legitimate? Do I have to apply for a GST number?

What all can I claim with a consulting business? Aim is to claim tax/gst exemptions on rent, travel etc using this business.

Check gst website. I guess there are some categories of consultancy work that do not mandatory require GST registration till 20 LPA. And in ITR you can use 44ADA to claim 50% of net payments as taxable income.

Only works well till 10-15L payments over the year.

After that, better option is forming LLP.

 

[sunit123]

If t/o less than 20 lac (services) / 40 lac (goods) then GST not required

To avoid unnecessary compliance, get GST as sole proprietor (If t/o exceed 20 lakh)

You can claim business expenses if you opt for audit...In case of consulting, you may opt for presumptive income to avoid unnecessary compliance

You can adjust GST of your business expenses as ITC against the GST paid by your clients

Classification of income is diff from GST. You may opt for 44AD or 44ADA depending on the nature of income.

Avoid LLP or Pvt Ltd registeration, you will be focusing more on compliance than your business.