I am running a small engineering consultancy company. Annual turnover of the company is 5-6 laks. We are filing GST & IT returns properly. Only 4 people working and we use my house first floor as working space of office. Even though the office is in house, we took commercial tariff for electricity connection. Now, the corporation tax collector is saying that I have to pay 1.2 laks per annum as commercial tax, 12000 rupees per annum as professional tax per employee.
If I pay 1.68 lakh per annum to corporation is more than my earnings after filing IT.
How could I get rid of this issue? Guide me.
Contact a Chartered accountant who is also an advocate. You can use part of your residence for your professional activities, and professional taxes has to be recovered from employees and to be paid to Corporation. When you are in business you are answerable to tens of authorities and you have to develop a team of Advocate and tax consultants as your focus get distracted from your objective of business due to this intricacies not known to you. You may have to pay a nominal fee, but trust me you will be more productive, once you shed your burden on them. Slowly learn in the process on your own.