Taxes to be Deducted by Sole Proprietary Firms while paying Salaries & elsewhere

[Diptanshu]

Hi

I have set up an organisation/business, the products of which are internet based educational materials. I have set it up as Sole Proprietorship. Now, I would have to recruit human resources in order to get my product ready. Threre are two ways by which I can pay the recruitees. The first is to offer 'Salaries' and the second is to offer 'Professional Fees'. The recruitment can be permanent or contractual. I cannot think of any other options. Now, the issue is, what are the hassles and tax deductions I have to keep in mind?

I do not know:

1. Whether/where to deduct Professional Tax and if deducted where and how to submit the deducted amounts.
2. Whether/where Service Tax is deductible and if deducted where and how to submit the deducted amounts.
3. Where TDS is deductible and whether my own PAN is to be used as the deductor (Sole Proprietorship).
4. Whether there are any other taxes that are either to be deducted or paid.

I also need to know where to provide Salary Slips and where not (are such slips to be given when I pay 'Professional Fees' to them?).

Moreover, do I need to register a separate PAN and TAN for my organisation? In other words when does my business get an identity distinct from my personal identity? I have obtained a trade license for my organisation. Are there any other licenses to be acquired or registrations to be done. Is there any procedure by which I can attach a 'R' or 'TM' (Registered or Trade Marked) icon to my organisation name or its product (I understand that this might be out of the perview of this forum). Since the internet does not operate with barriers of countries, I can also reach out to other countries to whom my product might appeal. In that case foreign money will be coming in. Do I need to get registered somewhere to be able to make foreign transactions/trade and what are the taxes payable in that regard.

Furthermore, the product would not be ready by the end of this financial year and hence for now money would only go in and not come out as return right now. I need to know if I need to reflect the expenses in my personal IT Return for this year (as the expenses are from my own income) and whether to prepare an audit report or IT Return for the organisation as well. When profits start coming in, do I need to pay taxes untill I break even on the expenses? Moreover, I might decide to keep a part of the profits with the business to augment its growth, and keep the rest as mine. When I pay taxes on behalf of my business, do I have to pay taxes once again when I accept the profits as mine? Do I need to consider the income or the profits while paying taxes?

I would be glad if anybody could help me out with my queries (too many in one topic).