1. Since it is consulting business of high projects it is advisable if you forma a Firm albeit a proprietorship firm.

2. Show the fees received by the Firm as the income of the assessee in the ITR of the Firm.

3. if you project your income as that of the Firm then you can show lot of expenditure towards running the Firm to show lesser profit in file for the purpose of income tax assessment.

4. Proprietorship Firm need not e registered. A ITR file in the name of the Firm is enough to take care your Tx hassles.

1. The Trade license in the name of the Firm, the ITR in the name of the Firm, the bank a/c in the name of Firm are enough to prove its existence.

2. Yes PAN should be different from that of the owner.

3. The income is assessable for the purpose of the income tax payments.If you pay the correct amount of income tax then there is nothing to worry.

. 1)there is no formal procedure to register sole proprietorship as sole proprietor is considered extension of proprietor

2) existence of sole proprietorship can be established by opening bank account in name of firm or obtaining licences required for running business

3) RBI KYC norms mandate that to open bank account in name of sole proprietorship any two of following documents may be submitted

a) certificate issued by muncipal corporation under shops and establishment act

b) sales and income tax returns

c) registration certificate issued by service tax/ profession tax authorities

d) CST/VAT certificate

e) Registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, etc.

f) Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.

Dear Querist

You may register your firm as sole proprietor firm before registrar of firm. It is not mandatory but will be better for future requirements.

After registration you can apply for service tax, pan card, current account.

Total payment should be credit in current account and you have to file income tax return and service tax return on behalf of your firm.

1. Since you want to start a sole proprietorship firm, you need not get registered under firm and societies registration. Registration under shop and commercial Establishment Act is enough.

2. Also required is a bank Account in the name of your Sole Proprietorship business.To start a sole proprietorship, all you need is a bank account. Go to a bank, open a bank account in the name of the firm.

3. You will require a PAN Card of the Sole Proprietor.

4. Service tax registration for businesses providing services is mandatory for companies in India who's turnover has crossed Rs. 9 lacs.

5. Company providing goods will have to register for Value Added Tax or VAT (within same state) and/or Central Sales Tax or CST (between states) once their turnover has crossed Rs. 5 lacs, as it becomes mandatory then.

6. Other Registrations such as Importer Exporter Code (IEC), Professional Tax, Shop and Establishment License, etc. must be obtained, if applicable.

7. In case, you employ more then 10 persons, you have get register your under Factories Act and also have to obtain code nos fro EPF and ESI departments.

1. The firm will owe its separate existence to the bank account, trade licence and its ITR. Nothing else is required.

2. The sole proprietorship firm requires its own PAN card.

3. As long as there is no tax evasion the large funds shall not pose any problem to you.

1. Though you are cexpecting high fees for providing advices for high value projects, it is not illegal to accept such heavy amount in your savings bank account,

2. From your said savings account also you can show expenses, while filing your I.Tax return,

3. It is not necessary to open a company to accept high value peyments.

1. If you open a proprietorship firm, you shall have to collect trade license,

2. For proving the existance of the proprietorship firm, you can submit the said trade license,

2. The ITR, PAN Card, bank a/c no. etc. should be in the name of the proprietorship firm.