Annual Compliance Checklist for Startups
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A startup running as a private limited company has to follow numbers of compliance as laid down by various statutes and other regulatory bodies. These include but are not limited to the periodic filing of tax and other returns, holding the board and other meetings, maintaining statutory books and accounts etc.
- Exports would be zero-rated.
- Tax will be shared between the Central and State Government.
An example for IGST:
Consider that a businessman Rajesh from Maharashtra had sold goods to Anand from Gujarat worth Rs. 1,00,000. The GST rate is 18% comprised of 18% IGST. In such case, the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the Centre.
Find below a brief overview of the documentation and formalities to be observed and become tax and law compliant.
Non-compliance can attract penalties and may also bring an end to business in extreme cases.
The compliances can be categorized as below:
- Registrar related Compliance
- Non-Registrar compliance
B. Non-Registrar compliance
Payment of periodic dues (GST Liability, TDS & TCS payment)
Filing of periodic returns – (Monthly, quarterly, annual returns- GST, TDS, etc)
Monthly/Quarterly GST Returns
Quarterly TDS Returns
Assessment of advance tax liability and payment of advance tax periodically
Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)
Filing of Tax Audit Report
Regulatory Assessment of business under different acts of law (Eg. Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act etc.)
Often entrepreneurs get overwhelmed by the number of compliances and in absence of professional guidance end up paying interest and penalties.