Important Tax and Compliance Tasks to Manage Your Business

Home Blog Important Tax and Compliance Tasks to Manage Your Business

Important Tax and Compliance Tasks to Manage Your Business
 

Running a business is not as simple as it seems. It's not just the selling of products or services like it seems to the outside world.
Several things happen behind the scenes of a business and compliance tasks are one of them. These need to be managed to ensure that the business is running smoothly and within the bounds of the law.
In this article, we will discuss some of the most important tax and compliance tasks that you need to manage in order to keep your business running smoothly in India.
 

Registering and Filing for GST

The first and most important compliance task that you need to take care of is GST registering and filing. The Goods and Services Tax (GST) is a new indirect tax regime that was introduced in India on 1st July 2017. All businesses that are registered under the GST Act are required to file their returns on a monthly or quarterly basis, depending on their turnover.
All businesses supplying only goods that have an aggregate turnover of more than Rs 40 lakhs (Rs 20 lakhs in case of special category states) and all businesses supplying only services or both goods & services that have an aggregate turnover of more than Rs 20 lakhs (Rs 10 lakhs in case of special category states) need to register and file for GST.

  • Filing Income Tax Returns

Another important compliance task that you need to take care of is filing your online income tax return. The goal of all businesses is to make profits and this income is taxable as business tax/income tax. You must report all of your business's income for the assessment period on your tax return and pay tax on it. In addition, every business must pay advance tax on a quarterly basis which have total tax liability of Rs.10,000 or more for the financial year.
All businesses in India are required to file their income tax returns on an annual basis.

  • Maintaining Books of Accounts

All businesses in India are required to maintain proper books of accounts. The books of accounts need to be maintained on a double-entry basis and should contain all the transactions of the business. The books of accounts need to be maintained for a period of 7 years from the end of the relevant financial year.
Apart from being a legal requirement for businesses, books of accounts come in handy in many scenarios. For example, investors often ask for financial statements before investing in a startup. And it also helps you make sound financial decisions for your business.

  • TDS and TCS

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are two other important tax compliance tasks that businesses need to take care of. Under the TDS regime, businesses are required to deduct tax at source on certain payments made by them. On the other hand, under the TCS regime, businesses are required to collect tax at the source of certain receipts.
TDS and TCS are both mandatory for businesses in India. And failure to comply with either of these regimes can result in penalties and interest.

  • RoC Compliance
    RoC (Registrar of Companies) compliance is another important task that businesses need to take care of by companies registered under the Ministry of Corporate Affairs. These companies are required to file certain documents with the Registrar of Companies every year so that the RoC can keep track. These documents include the balance sheet, profit and loss account, and annual return.
    Failing to file these documents on time can result in penalties and interest.

    Tips to Stay Compliant
    Here are a few tips to stay compliant and not attract any penalty:
  • Keep a record of all the transactions made in the name of the business. Try to keep them all in one place and properly organised.
  • Try to automate things that can be automated. This will save you time and take away the chance of missing deadlines.
  • Outsource this work to eAuditor Office. You can stop worrying about the due dates and the numerous documents that you need to juggle to keep up with compliance by opting for the eAuditor Office's services.


Conclusion
These are some of the most important tax and compliance tasks that you need to take care of in order to keep your business running smoothly in India. complying with all the legal requirements not only keeps your business safe from penalties and legal troubles but also instil confidence in your customers, shareholders, and investors.
 

 

 


 


Author : Nivetha

Date     : 12-Jul-2022


GET HELP