Taxation To Tax or not to Tax ? To Tax or not to Tax ?

Proprietorship Singly owned or managed company Singly owned or managed company Mandatory Requirements Mandatory Requirements Pan Card of Proprietor Pan Card of Proprietor Service Tax Number if providing services covered under service tax Service Tax Number if providing services covered under service tax TIN number if engaged in trading of goods covered under the Sales Tax Act TIN number if engaged in trading of goods covered under the Sales Tax Act Current Account with any Bank Current Account with any Bank TAN Number for TDS deduction TAN Number for TDS deduction Statutory Compliance Statutory Compliance Income Tax Return ( ITR 4 ) Income Tax Return ( ITR 4 ) Maintenance of Books ( If Tax Audit is compulsory ) Maintenance of Books ( If Tax Audit is compulsory ) Service Tax Return ( if service tax number taken ) Service Tax Return ( if service tax number taken ) Sales Tax Return ( if TIN number taken ) Sales Tax Return ( if TIN number taken ) Filing of TDS Return if Tax Deducted at Source Filing of TDS Return if Tax Deducted at Source Tax Audit – If applicable as per Income Tax Act ( i.e if turnover exceeds the statutory limit) Tax Audit – If applicable as per Income Tax Act ( i.e if turnover exceeds the statutory limit)

Partner Ship Various Individuals creates a partnership concern Various Individuals creates a partnership concern Mandatory Requirements Mandatory Requirements Pan Card of Partnership Pan Card of Partnership Partnership Deed Partnership Deed Service Tax Number if providing services covered under service tax Service Tax Number if providing services covered under service tax TIN number if engaged in trading of goods covered under the Sales Tax Act TIN number if engaged in trading of goods covered under the Sales Tax Act Current Account with any Bank – Can have various signatories Current Account with any Bank – Can have various signatories TAN Number for TDS deduction TAN Number for TDS deduction Statutory Compliance Statutory Compliance Income Tax Return ( ITR 5 – Partnership concern ) Income Tax Return ( ITR 5 – Partnership concern ) Income Tax Return ( ITR 3 – for individuals who are partners ) Income Tax Return ( ITR 3 – for individuals who are partners ) Maintenance of Books of Accounts Maintenance of Books of Accounts Service Tax Return ( if service tax number taken ) Service Tax Return ( if service tax number taken ) Sales Tax Return ( if TIN number taken ) Sales Tax Return ( if TIN number taken ) Filing of TDS Return if Tax Deducted at Source Filing of TDS Return if Tax Deducted at Source Tax Audit – If applicable as per Income Tax Act ( i.e if turnover exceeds the statutory limit) Tax Audit – If applicable as per Income Tax Act ( i.e if turnover exceeds the statutory limit)

Private or Public Ltd Co Various Individuals are Directors or Promoters Various Individuals are Directors or Promoters Privately held or Publicly held shares Privately held or Publicly held shares Mandatory Requirements Mandatory Requirements Registration of Company with ROC Registration of Company with ROC Memorandum of Association and Articles of Association Memorandum of Association and Articles of Association Pan of the company. Pan of the company. Service Tax Number if providing services covered under service tax Service Tax Number if providing services covered under service tax TIN number if engaged in trading of goods covered under the Sales Tax Act TIN number if engaged in trading of goods covered under the Sales Tax Act Current Account with any Bank – Can have various signatories Current Account with any Bank – Can have various signatories TAN Number for TDS deduction TAN Number for TDS deduction DIN required for all Directors ( ROC purpose ) DIN required for all Directors ( ROC purpose ) Digital Signatures required for Director who is authorized signatory Digital Signatures required for Director who is authorized signatory

Private or Public Ltd Co Statutory Compliance Statutory Compliance Audit and Tax Audit – If applicable as per Income Tax Act Audit and Tax Audit – If applicable as per Income Tax Act Income Tax Return ( ITR 6 – Partnership concern Income Tax Return ( ITR 6 – Partnership concern Maintenance of Books of Accounts Maintenance of Books of Accounts Service Tax Return ( if service tax number taken ) Service Tax Return ( if service tax number taken ) Sales Tax Return ( if TIN number taken ) Sales Tax Return ( if TIN number taken ) Filing of TDS Return if Tax Deducted at Source Filing of TDS Return if Tax Deducted at Source Registrar of Companies – Annual Return with ROC form 20B, 66 for compliance certificate, 23AC and ACA Registrar of Companies – Annual Return with ROC form 20B, 66 for compliance certificate, 23AC and ACA Tax Audit – If applicable as per Income Tax Act ( i.e if turnover exceeds the statutory limit) Tax Audit – If applicable as per Income Tax Act ( i.e if turnover exceeds the statutory limit)

Income Tax Income Tax Site – Income Tax Site – Different forms for different concerns Different forms for different concerns ITR 4 – Proprietorship ITR 4 – Proprietorship ITR 5 – Partnership ITR 5 – Partnership ITR 6 – Limited Companies ITR 6 – Limited Companies Due Dates Due Dates 31 st July for whom tax audit is not required. 31 st July for whom tax audit is not required. For Individuals/Partnership who requires tax audit u/s 44AB – 30 th September For Individuals/Partnership who requires tax audit u/s 44AB – 30 th September For Companies – 30 th September For Companies – 30 th September Rates of Income Tax Rates of Income Tax Individuals – As per the Tax Slab Individuals – As per the Tax Slab Partnership and Corporate – 30% of the Profit and Surcharge Partnership and Corporate – 30% of the Profit and Surcharge

Tax Deducted at Source Income Tax Site – Income Tax Site – TAN number is compulsory TAN number is compulsory TDS deducted should be deposited on or before 7 th of every month (April to February) and TDS deducted should be deposited on or before 7 th of every month (April to February) and TDS deducted in March should be deposited on or before 30 th April TDS deducted in March should be deposited on or before 30 th April Different TDS certificates issued for different deductees Different TDS certificates issued for different deductees Form 16 for salaried employees Form 16 for salaried employees Form 16A for professionals and other deductees Form 16A for professionals and other deductees Due Dates for filing TDS Returns Due Dates for filing TDS Returns 1 st Quarter April to June – 15 th July 1 st Quarter April to June – 15 th July 2 nd Quarter July to Sep – 15 th Oct 2 nd Quarter July to Sep – 15 th Oct 3 rd Quarter Oct – December – 15 th Jan 3 rd Quarter Oct – December – 15 th Jan 4 th Quarter Jan – March – 15 th May 4 th Quarter Jan – March – 15 th May Rates of TDS Rates of TDS Depends upon the deductor and deductee and type of transaction Depends upon the deductor and deductee and type of transaction

Sales Tax TIN Number has to be obtained compulsorily if Sales Tax is applicable i.e once sales transaction is done, covered under the Sales Tax Act. TIN Number has to be obtained compulsorily if Sales Tax is applicable i.e once sales transaction is done, covered under the Sales Tax Act. Due date for remittance of VAT and CST returns – for Financial Year – 20th of the following month. Due date for remittance of VAT and CST returns – for Financial Year – 20th of the following month. Sales Tax need to be deposited monthly/quarterly/annually depending upon the turnover and quantum of Tax Payable. Sales Tax need to be deposited monthly/quarterly/annually depending upon the turnover and quantum of Tax Payable. Returns can be filed monthly or quarterly /annually depending upon the turnover and quantum of Tax Payable Returns can be filed monthly or quarterly /annually depending upon the turnover and quantum of Tax Payable

Service Tax Service tax is mandatory if services provided covered under the service tax. Service tax is mandatory if services provided covered under the service tax. Mandatory for all types of concern Mandatory for all types of concern Rate of Service Tax 14% on the services rendered Rate of Service Tax 14% on the services rendered To apply – ST 1 form is required To apply – ST 1 form is required To file service tax return ST 3 form is required To file service tax return ST 3 form is required Service Tax Site - Service Tax Site - Due dates for depositing service tax is Due dates for depositing service tax is Incase of Companies – April to Feb (5 th of every following month) and March – 31 st March Incase of Companies – April to Feb (5 th of every following month) and March – 31 st March Incase of Non Companies – April to June – 5 th July, July to Sep – 5 th Oct, Oct – Dec – 5 th Jan and Jan – March – 31 st March Incase of Non Companies – April to June – 5 th July, July to Sep – 5 th Oct, Oct – Dec – 5 th Jan and Jan – March – 31 st March Due date for filing service tax returns – Due date for filing service tax returns – Half yearly – April to Sep – 25 th Oct Half yearly – April to Sep – 25 th Oct Half yearly – Oct to March – 25 th April Half yearly – Oct to March – 25 th April

Accounting Management Method of Accounting – Accrual or Receipt Basis ( Cash Basis ) Method of Accounting – Accrual or Receipt Basis ( Cash Basis ) Accounting Standard – ICAI – Indian GAAP – General Accounting and Auditing Practices Accounting Standard – ICAI – Indian GAAP – General Accounting and Auditing Practices Types of Accounts – Balance Sheet, Profit and Loss, Cash Flow, Ratio Analysis, Bank Reconciliation, Types of Accounts – Balance Sheet, Profit and Loss, Cash Flow, Ratio Analysis, Bank Reconciliation, Types of Books – Cash Book, Bank Book, Ledger – Journal Vouching, Debtors and Creditors Types of Books – Cash Book, Bank Book, Ledger – Journal Vouching, Debtors and Creditors Types of Vouchers – Cash, Bank, JV Types of Vouchers – Cash, Bank, JV U/s 44AA – Compulsory maintenance of books of account if the turn over exceeds Rs 1 crore. U/s 44AA – Compulsory maintenance of books of account if the turn over exceeds Rs 1 crore.

Accounting Management – Important Figures Balance Sheet – Assets should match the Liabilities Balance Sheet – Assets should match the Liabilities Profit and Loss Account - Gross and Net Profit Profit and Loss Account - Gross and Net Profit Earnings before Interest, Tax and Depreciation Earnings before Interest, Tax and Depreciation Ratio Analysis – Stock Turnover, Debtors Turnover, Net Profit, Current Ratio etc. Ratio Analysis – Stock Turnover, Debtors Turnover, Net Profit, Current Ratio etc. Cash Flow and Fund Flow in positive and negative Cash Flow and Fund Flow in positive and negative Valuation of the Company. Valuation of the Company.

Fair accounting and compliance practice If accounting and compliance practice followed properly and on time you come in good books of the regulatory body If accounting and compliance practice followed properly and on time you come in good books of the regulatory body Increase in credit worthiness and easy to obtain credit Increase in credit worthiness and easy to obtain credit Checks on creditors and debtors – Helps in to reduce the credit period and bad debts Checks on creditors and debtors – Helps in to reduce the credit period and bad debts Increase in valuation of the company as following correct accounting principals may give correct gross and net profit figures along with other relevant figures. Increase in valuation of the company as following correct accounting principals may give correct gross and net profit figures along with other relevant figures.