Session 1 Functions/ Objectives/ Purpose of Food Packaging

Requirements of effective Packaging

Variations in Packaging
Session 2 Packaging Design Requirements
Food Packaging Materials (Types and Special features)
Packaging Closures and Sealing Systems
Session 3 FFS Operation
Logistical Packaging for Food Marketing Systems
Testing & Quality Control
Session 4 Shelf Life Evaluation of Packaged Food Products Part1
Shelf Life Evaluation of Packaged Food Products Part 2
Shelf Life Evaluation of Packaged Food Products Part 3
Session 5 Application of Nano Techmology , Environmental
concerns & Future Prospects
Revision
Tax Benefits for Consultants

Companies have now started hiring employees on a contract basis and though they work in
the office premises, their legal status is not the same as an employee. They work on a contract
or a consultant basis and they get a fixed amount of remuneration. They do not get HRA,
LTA, leave encashment or pension, etc.

Consultant can claim depreciation on assets like AC, furniture, computer, phone or other
business assets used to provide service. They are required to maintain accounts of
expenditure that can be ascertained by the tax department. The documents are to be
maintained for a specified number of years.

If the income on the gross receipt exceeds a specified amount, the books of account is to be
audited by a CA. Company deducts a flat 10% tax from the consultants fee at the time of
payment. Consultant has to pay advance tax at designated bank branches in 3 instalments.
The first instalment is to be paid by 15th September, second by 15th December and third by
15th March. Consultant must comply with the service tax regulations if the services he or she
provides are included in the notified services.

Many people prefer working as a consultant as they get to take home a high income and have
a low income tax liability. They like the benefit of holding a lump-sum amount without any
deductions. The consultant bills the company for the services rendered and get paid in lump
sum and only 10.3% tax is deducted at source.

Expenses that can be deducted are as follows:

If the consultant works from home, rent of space

Commuting if it is related to work

Vehicle fuel expenses

Equipment maintenance

Telephone and internet bill

Stationery charges

Cost of cell phone

Car loan interest

Courier and mail service

Books and newspapers

 Vehicle insurance

Sweeper, peon or drivers salary

Depreciation is allowed on vehicle and office equipment

If the consultant buys a computer, car or a phone, his taxable income goes down. Any
furniture that the consultant uses to work on is considered as permissible expense. However
the consultant will not get exemption for house rent. He also does not get medical allowance
or leave travel assistance.

The company does not provide PF and if the consultant is not planning for his or her
retirement, he or she could face a lot of trouble after retirement. Consultant is required to
maintain a record of the work related expenses incurred for up to 8 years after filing the
return. Consultants whose income exceeds Rs.10 lakh must get their expenses audited by a
chartered accountant. Consultant trades off less tax for more paperwork. The highest tax
charged for a consultant is 11.33% which includes the educational cess whereas an
employee can get charged 33.99% as the highest tax.

Consultants whose annual income does not exceed Rs.20,000 will not be taxed. The gross
consultancy fee is deducted by rent for office, telephone, conveyance expense, repair and
maintenance, depreciation of vehicle for business use, depreciation on compute, photocopies,
printers etc. The net income is taxable under the professional income.

Consultant must be aware if the services he or she renders attracts service tax which is
charged at 12.36% on the consultancy fee.

The pros of being a consultant is that you can work independently, organise and manage the
resources and are not required to be at office. But you will be trading in a job security and the
comfort of regular income. Consultancy arrangement attracts risk associated with an
independent enterprise.