Doing business in India is a tricky proposition, Just not because of diversity in customer requirement and behavior but more due to various legal provision and compliances.
While we can’t do much about the situation, what we can do here is to understand, what are the legal obligation we need to comply when doing business in India.
As we have explained in step no 5 :-( Get the registrations required) various registrations requirements like Service Tax, VAT, CST, TAN, etc. There are obligations like paying taxes and filing periodical returns as prescribed in particular Law, which we need to comply after taking registration.
While talking about various legal obligations or compliances we can broadly explain it in two steps:-
- Payment of taxes :- In most of the tax registration just like VAT, Service tax, TAN, CST, etc, The business need to collect tax, For example, Tax from buyer is VAT and CST, Tax from Service receiver as provided in Service tax & Deduction from the payment made as there are provided in TDS deducted for TAN holder.
Here, the obligation is to collect the taxes and pay to government account before the due date provided.
- Filing of Return:- Now the second step after paying taxes to Govt. account is to file a return before the due date as provided.
Now there is the biggest misunderstanding about the filing of return is that:
Most people ask:- When I already paid the taxes, why is there a need to file a return?
This may sound stupid but we generally receive a lot of question like this.
The answer is :- in payment of taxes we generally put taxes and very limited details in the challan at the time of making payment of taxes, which is not enough for Govt.D departments to ascertain whether all people have complied with rules or not, hence there is a provision of filing return where all information related to payment of taxes and nature of payment are provided during filing of a return.
To explain further,” The requirement of filing return “understands this example.
You deducted Rs 50000 from various people towards payment made towards TDS deductions and you paid it by a common challan accordingly however the tax department needs to understand PAN number of various deductee so that due credit can be given to them and cross-verification can be done.
While in most of the cases where tax collection is not involved the return filing or renewal of registration is required.
Effect of non-compliance:- While taking various registrations and certificates are important to start your enterprise, meeting all the legal compliances are utmost important to ensure your enterprise run without facing much legal hurdle.
In the subsection of this step, we will guide you in details what are various legal compliances are required and how to meet these obligations.
Easy solutions for cumbersome compliances:- Whatever business you are or whatever services you may be provided, it’s always advisable to take services of a professional firm, who can guide you through all this legal maze.
AKT Associates scores a point by having dedicated team and experience to help your business sail smoothly through this cumbersome compliances So that you can focus more on your business area and we are here to help you,
Call @ 8080809061 to know how AKT Associates can play a Compliance partner to your venture.