Eligible time to apply for 7th year H1B extension

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Hello Gurus,


I really appreciate your suggestion on the feasible options for my 7th year H1B extension. Here are my details about the current status

H1b Status: Visa/I194 is valid till August 28 2016 and maxing out after that.
GC process: Labor filed on July 30 2015, went for labor audit and responsed on Feb 26 2016.
So here is the query I have : 
- When can I initiate my H1B extension as its going to maxing out in Aug ?
   Am I eligible to file the extension now(March 2016) before 6 months of the I94 expiry(Aug 28 2016) or
I need to wait till the completion of 365 days ie., till July 30 2016 as labor is filed on July 30 2015 and then only I am eligible to file my extension ? 
- If I am eligible to file H1b extension, Are there any issues if I go with the premium process.
Really appreciate your suggestions.


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