People might think that running a business is an easy task. Only you, as the entrepreneur, would know the amount of toil that you need to put in to manage the business every day. You have to be top of the game in various strategies concerning customer acquisition, customer support, competition handling, and so forth. Amidst all these, it is usual that you overlook another crucial aspect concerning business management. Such as compliances along with the requirement to file GST return online as well is critical to stay compliant and run a business smoothly. Here are some of the important tax and compliances tasks that you cannot afford to miss or neglect at any cost.
GST registration and submission.
The GST (goods and services tax) is the destination-based indirect tax. If you are offering any service or sell goods with an annual turnover of Rs. Forty lacs (Rs. 20 lacs for specific special category states), you should register with GST. This would allow you to charge GST on your services and products. Relying upon the business you operate, you will have to submit various GST returns periodically (monthly, quarterly, and annually), on or before the stipulated deadlines. According to prevailing rules, the following entities must compulsorily register with GST;
– Businesses and individuals registered under the tax services in the pre-GST regime. (service tax, VAT and excise etc).
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– Non-resident taxable person.
– Individuals will have to deduct TCS and TDS under the GST.
– Inter-state suppliers of goods and services.
– Casual taxable person.
– Business or person that supplies database access, online information, and retrieval services from outside the country to a business or person in India.
– Input service distributors.
– Business or person that supplies items via an e-commerce aggregator.
– All the e-commerce aggregators that facilitate supply via their platforms.
– Individuals selling on behalf of someone else, either as an agent or as principal.
– Any other business or person as notified by the central government or the state government.
Submission of business tax returns.
If you are running the business, you are doing it for monetary purposes. Or to earn profit or income out of it. This is what makes you liable to submit the ITR (income tax returns) for your business. You will have to show all your business income in the assessment period and pay tax on it within the stipulated time in the tax return. Also, every business will have to pay advance tax quarterly. You should make it habitual to pay all your taxes promptly and submit your tax returns before the deadlines.
Submission of RoC (registrar of companies) returns.
Every company registered under the companies act, 2013 (or companies act, 1956) requires to submit annual returns with RoC. The RoC needs these files to inspect the financial status of the company. As a part of the yearly compliance, you will have to submit the following forms compulsorily.
Form 23 AC.
Here, you will have to contain the company balance sheet details and submit them with the RoC within one month of holding the board meeting.
Form 20B or form 21A.
These are the annual return forms and must be submitted in e-mode with RoC within one month of conveying the annual general meeting (AGM).
You will have to submit a compliance certificate in form 66 if your annual paid-up share capital is between Rs. Ten lacs to Fifty crores.
Submission of TDS returns.
The business requires to make various types of payments like consultant fees, employee salaries, and payments for any work done for the business. When the business makes any such payments to anyone, it is done after deducting applicable TDS on the amount. You will have to deposit the deducted TDS with the government periodically. You must know the types of correction in TDS in re-submit it with relevant changes promptly if required.
Maintaining the books of accounts.
Your business requires to maintain the books of account accurately. An updated and efficient bookkeeping system allows the business to maintain information concerning its transaction easily. Also, it gives a crystal-clear picture of the business to investors and stakeholders. Therefore, whether you have a new business or an established one, you will have to be on top of the game to maintain your bookkeeping internally.
The aspects mentioned above would help you to make better decisions. Especially when it comes to performing the important tax and compliance tasks. They are too important to neglect for any business.
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