I am the director of a One Person Company. I am planning to start 3 coaching centres in 3 different places in India.
Each coaching classes will be run by three separate individual entity ( say operating entity) on profit sharing basis with my OPC. We will be out-sourcing/ purchasing study material from certain vendor/company.
Initial capital expenditure I/c purchase of requisite equipment like projectors , laptop etc ( Appx Rs 3-5 lakh) has to be done by OPC.
What will be efficient taxation wise - receiving tuition fee in name of opc & making expenditure by it subsequently sharing profit with operating entity.
Or providing loan/ grant to operating entity in lieu of capital expenditure ( Rs 3 lakh or so ) and allow tuition fee collection in name of operating entity subsequently sharing profit with operating entity.
What type of collaboration will be efficient taxation wise. PS - OPC has still no GST no . This year we are not expecting turnover to exceed by Rs 20 lakh.
Jun. 08, 2018