Business Return Filling
Once a corporation is established, it becomes a legitimate entity governed by the rules and regulations of the jurisdiction in which it operates. It obtains its own distinct name and legal identity, separate from its owners or leaders. This separation ensures that the corporation can own property, enter into contracts, sue or be sued, and conduct business activities in its own right.
Upon establishment, all businesses operating in India are required to file various documents and reports to ensure compliance with the relevant laws and regulations. These filings are made with the appropriate government agencies and are essential for the timely enforcement of the laws applicable to the business. Failure to file these documents or delays in filing can result in penalties and other legal consequences.
The process of filing documents typically involves submitting reports and forms prescribed by the relevant acts and regulations, along with any supporting documentation required. These filings serve as a means of transparency and accountability, allowing regulatory authorities to monitor the activities of businesses and ensure adherence to applicable laws.
Furthermore, timely and accurate filing of documents is crucial for maintaining the good standing of the corporation and avoiding any disruptions to its operations. It is imperative for businesses to stay informed about their filing obligations and to comply with all deadlines and requirements to avoid legal liabilities and penalties.
EPF Return Filling
Any establishment falling within the definition of a factory as outlined in Schedule 1 of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, and employing 20 or more individuals is required to designate itself for coverage under the Act. Additionally, any other establishment employing 20 or more individuals may be notified by the central government for coverage under the Act.
Furthermore, establishments employing fewer than 20 individuals have the option to voluntarily opt for coverage under Section 1(4) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
The primary objective of the program is to establish provident funds for the benefit of workers, as mandated by the Employees’ Provident Funds Act, 1952. Accordingly, the scheme applies to employees of all factories and other establishments covered by the Act, with exemptions outlined in Section 17 of the Act.
TDS Return Filing
TDS, or Tax Deducted at Source, is a mechanism implemented to ensure a steady inflow of tax revenue for the country. Under the TDS system, tax is withheld from specific expenses, and this deducted tax amount is subsequently deposited with the government at regular intervals.
To deduct tax at source, an entity must obtain a TAN, or Tax Deduction and Collection Number, which is a unique 10-digit alphanumeric identifier. Employers are not eligible to obtain a TAN, as they are required to deduct tax at source themselves. However, proprietorship businesses (subject to tax audit requirements) and other entities such as Private Limited Companies, LLPs, etc., are mandated to deduct tax at source when making certain payments, including salaries, payments to contractors or subcontractors, rent payments, etc.
Entities with TAN registration must file TDS returns regularly. These TDS returns are typically due on a quarterly basis, and failure to comply with the filing requirements may result in penalties. Therefore, it is essential for businesses to adhere to the TDS provisions and fulfill their obligations promptly to avoid any adverse consequences.
FCRA Annual Return Filling
Organizations registered under the Foreign Contribution Regulation Act (FCRA) are required to maintain various records at their head office and submit a report in the prescribed format to the Ministry, along with the audited records of the previous year. Any company receiving foreign donations must obtain a certificate from a Chartered Accountant (CA), which is provided in the form FC-6. Additionally, audited financial statements including the Balance Sheet, Revenue & Expense Statement, and a statement of collections and payments, along with certification and verification by the Chief Functionary, must be submitted.
The return must be filed for each financial year (from April 1st to March 31st) within 9 months of the end of the year, i.e., by December 31st of each year. Even if no international donations are received or used throughout the year, filing a ‘0’ return is mandatory. The report should be issued in the specified form FC–6, accompanied by the balance sheet and the revenue and expenditure statement approved by the Chartered Accountant. The CA is expected to report on the appropriate accounts and receipts in accordance with the regulations.
VAT Return Filing
Value Added Tax (VAT) Registration, also known as TIN (Taxpayer Identification Number) Registration, is a mandatory tax registration required for businesses engaged in the sale or production of goods in India. VAT is a multi-stage tax system based on the “Value Added Theory,” where tax is levied on the value added at each stage of production or distribution.
VAT registration is governed by the respective State Governments, meaning that each state in India has its own set of laws and regulations regarding VAT, tailored to the specific types of products produced or sold within the state. In most states, VAT registration is compulsory for merchants or producers with an annual revenue exceeding Rs. 20 lakhs (previously Rs. 10 lakhs).
Businesses with VAT or TIN registration must file VAT returns within the specified deadlines to avoid penalties. The frequency of VAT return filings, as well as the due dates, vary depending on the state regulations. VAT returns are typically required to be filed on a weekly, quarterly, or annual basis, as determined by the respective State Governments. Therefore, it is essential for businesses to stay informed about their VAT obligations and comply with the filing requirements to avoid any adverse consequences.
Service Tax Return Filing
Service tax is an indirect tax levied on services provided by businesses in India. It operates on the principles of the Value Added Theory, where tax is imposed on the value added at each stage of service delivery. The service provider is responsible for paying tax on the value-added portion only.
Service tax is typically charged by the end-user of the service, and the business providing the service is responsible for collecting and remitting the tax to the government. The standard service tax rate is generally set at 14% of the value of the taxable service.
Entities liable to pay service tax and holding service tax registration must file service tax returns in either Form ST-3 or Form ST-3A. These returns are due semi-annually, and it is mandatory to file them even if no taxable transactions have occurred (NIL return). Service tax payments must be made electronically or manually by the entity on the respective due dates. Compliance with service tax regulations is essential to avoid penalties and ensure smooth business operations.