Re:I tried starting a manufacturing unit in India
by 2Gkashmiri on Friday October 28, 2022 @03:44AM
(#33368705)
you can claim as many expenses as you like, in companies there are restrictions, there are deferred tax assets and liabilities because of companies act and income tax act depreciation difference.
There is MAT applicable sooner than sole proprietorship i think.
lets just say it is easier to "appropriate" the books as a sole proprietorship.
you have to pay mca fees for your authorized capital, one off but if you are doing serious business, it costs.
i know, 5% "might" sound a lot in taxes but by fudging some numbers, by not paying complaince fees, by not being on the hook for a "lot of compliance" and the penalties that come up, it does not sound worth the risk....
Look, if you are doing big business, want to raise money from the public, sure go ahead but not otherwise.
lets just say it is easier to "appropriate" the books as a sole proprietorship.
you have to pay mca fees for your authorized capital, one off but if you are doing serious business, it costs.
i know, 5% "might" sound a lot in taxes but by fudging some numbers, by not paying complaince fees, by not being on the hook for a "lot of compliance" and the penalties that come up, it does not sound worth the risk....
Look, if you are doing big business, want to raise money from the public, sure go ahead but not otherwise.