Tax Compliance Is Your Ticket To Peace Of Mind
Filing requirements depend on the type of entity, nature of operations, location, etc. However, as per the current taxation and compliance regulations in India, a system of self-declaration exists. This means that all entities have a responsibility, under various acts, to declare business performance periodically and to pay taxes accordingly. The consequences of misreporting and incorrect filing are severe and can lead to penalties and proceedings.
Over the years compliance related filing in India has gained vital importance and it aims to keep a check on manipulation of financial reports. Fluctuations in performance, year-end adjustments, etc., are tracked by tax authorities. Hence, it is crucial that accurate declarations are made under various regulations.
Periodic reporting also serves an additional purpose of regular collection of taxes. This is beneficial from the view point of revenue authorities as well as taxpayers since collection of tax is shifted from year-end to periodic instalments.
For example, in India, Income Tax is to be paid in advance on an estimated basis as per prescribed Advance Tax rules. It is the duty of the assessee to estimate its own annual performance and pay tax as per defined due dates and rates. Failure to comply with; or incorrect calculation and payment can lead to penalty as well as interest.
Proper discharge of statutory requirements is possible only when there is a strong internal system and if the accounting function is regularly updated. The basis for all financial reporting and compliance related filing is accounting and book keeping function. Hence, it is important for all kinds of companies and business entities to undertake proper reporting and fulfil compliance requirements.
At V. Purohit & Associates, we offer the following comprehensive set of tax compliance services for businesses in India.
We are a new-age financial accounting company, that upholds age-old values and principles of Chartered Accountancy. We offer a fairly-differentiated set of services, tailored to specific business goals and challenges.