27 Apr 2022, 11:00 — 6 min read
People might think running a business is a ‘cakewalk’. Only you, as an entrepreneur, would know the amount of hard work you need to put in to manage a business, day in and day out. You need to be on top of numerous strategies related to customer acquisition, competition handling, customer support, and whatnot! Amidst all these, it’s quite normal for you to overlook another important aspect related to managing your business – the tax and compliance part. While we perfectly understand what makes you overlook this part of your business; let us also tell you that you may find yourself in troubled waters, if you do not ‘streamline’ this important part.
This is the reason why we have listed certain important tax and compliance tasks that you just can’t afford to miss, ignore, or overlook at any cost. Go through this blog and we are sure you will thank us later!
The Goods and Service Tax (GST) is a destination-based indirect tax. If you provide any service or sell goods and have an annual turnover of over ₹40 lakhs (₹20 lakhs for certain special category states), you must register with GST. This will enable you to charge GST on your products/services. Depending upon the business you operate, you need to file different GST returns periodically (monthly, quarterly, and annually), on or before the respective deadlines. As per the prevailing rules, the following entities should mandatorily register with GST:
If you are running a business, you are doing so to earn a profit or income. It’s simple! This is what makes you liable to file income tax returns for your business. In the tax return, you need to show all your business’s income in the assessment period and pay tax on it. Also, every business needs to pay advance tax quarterly. You must make it a habit to pay all your taxes on time and file your tax returns before the deadline.
Every company registered under the Companies Act of 2013 (or Companies Act, 1956) needs to file annual returns with the RoC (Registrar of Companies). The RoC requires these files to examine the company’s financial status. As a part of the annual compliance, you need to file the following forms mandatorily:
Form 23 AC
Here, you need to include details of the company balance sheet and file with the RoC within 30 days of conducting the board meeting
Form 20B OR Form 21A
These are annual return forms and must be filed in electronic mode with the RoC within 30 days of holding the AGM (annual general meeting)
You need to file a compliance certificate in form 66 if your annual paid-up share capital is in the range of ₹10 lakhs – ₹50 crores.
A business needs to make different types of payments such as employee salaries, consultant fees or payment for any work done for the business etc. When your business makes any such payments to any party, it is done after deducting the applicable TDS (tax deducted at source) on the amount. You need to deposit the deducted TDS with the government periodically. You should file TDS returns timely to reflect the TDS collected and deposited by your business.
Your business needs to maintain proper books of accounts. An efficient and updated bookkeeping system enables the business to retrieve information regarding its transactions easily. It also provides a clear picture of the organization to all its stakeholders and investors. Therefore, whether you are a growing business, startup or a mature corporation, you need to be on top of your internal bookkeeping systems, all the time.
The above are some of the most important tax and compliance tasks a business can’t afford to ignore. Hope you complete all these on time and stay on the right side of regulations.
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Posted byVakilsearch Staff
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