MONEY TALK

MONEY TALK
BUSINESS IN THE HOUSE

Cooperative:- This is a corporation organised and controlled by members, who pool resources. Some quick tips to get you started:
1. Check with a CA, who will tell you how to clear the legalities and maintain records. He will also set your tax situation in order from day one.
2. Work out a laundry list: space; manpower; monetary inputs (for present and future loans); time away from family; budget for losses; and how long you will give yourself to judge whether it’s worth continuing.
3. Your venture must interest you, but you must start it only if you already have basic skills in that direction — it’s best not to try and learn on the job. Remember, the owner is you!
4. Learn to be professional — discourage special favours (discounted rates or even freebies) to friends.
5. In the case of trading business ventures (such as purchase of goods), if your turnover exceeds Rs 5 lakh in one financial year, then a sales tax registration is necessary. In case your home trading business exceeds Rs 40 lakh (Rs 10 lakh in case of a consultancy), your account needs to be audited by a CA and income tax return, filed in time to avoid a penalty.