Industry
Accounting for consultants who bill by the project
Your income is lumpy, your clients deduct tax before paying you, and your laptop may be your only asset. The books are simple, but three things go wrong repeatedly: unmatched TDS, late GST decisions and no money set aside for tax.
The one sheet every consultant should keep
If you do only one thing, keep this up to date. The row is an invented example. It shows why a bank credit never equals the invoice.
| Invoice | Client | Billed | GST, if any | TDS deducted | Received | TDS seen on portal? |
|---|---|---|---|---|---|---|
| INV-014 | Example Pvt Ltd | ₹1,00,000 | Depends on registration | ₹10,000 | ₹90,000 | Check |
The TDS shown is only an illustration of the arithmetic, not a statement of the rate that applies to you.
Decisions that catch consultants out
- When do I need GST?
- Section 22 of the CGST Act sets ₹20 lakh outside special category States. Billing clients in other States does not by itself make a services business register below that limit (Notification 10/2017-Integrated Tax), but some situations need registration regardless. Keep watch on your annual total, and ask before you cross it. See GST registration.
- Foreign clients?
- Services to clients abroad may be treated as exports for GST if conditions are met, which can involve specific paperwork and how you receive foreign currency. Ask before your first invoice, not after.
- Is the presumptive scheme right for me?
- Section 58 of the Income-tax Act, 2025 offers 50% of receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are within 5%, for specified professions. Section 62(4) names technical consultancy and information technology, among others, but not consulting in general, so ask whether yours qualifies. Consider your real expenses too.
- Advance tax
- Clients' TDS may not cover your full tax. Tax may be due in instalments during the year. Set aside a share of each receipt.
- Is a company or LLP sensible?
- It is often unnecessary at the beginning, and it adds yearly compliance. See choosing an entity.
Expenses you should keep proof of
- Laptop, software and subscriptions, with invoices in your name
- Co-working or office rent
- Travel for client work, with a note of the project
- Professional memberships and training
- Internet and phone, with an estimate of work use agreed with Deepak Mittal
Only claim what you can support. If a client reimburses a cost, keep it separate on the invoice and in your records.
A low-effort routine
- On each invoice: update the sheet.
- Monthly: mark what was received and chase overdue invoices.
- Quarterly: check the portal for TDS credit, and consider advance tax.
- Yearly: hand over the sheet, statements and bills for your return.
Do you even need an accountant?
With one client and one account, perhaps only at return time. Once you have GST, foreign clients or several clients with TDS, regular help usually pays for itself in avoided errors.
Questions to ask Deepak Mittal before work starts
- Do you work with people in my kind of consulting?
- Will you check TDS credits against invoices?
- Can you handle export invoicing, if I need it?
- Will you remind me about advance tax?
Sources checked, November 2026
- Income-tax Act, 2025, Gazette copy (opens in a new tab), sections 58 and 62 (read at source); CGST Act, section 22 (opens in a new tab) and Notification 10/2017-Integrated Tax (opens in a new tab) (read at source, 10 November 2026)
Project invoices and TDS credits to match?
Tell us your kind of work, roughly how many clients you have, and whether any are abroad.
