‘A fine is a tax for doing wrong ; A tax is a fine for doing well’.
In this world, nothing is certain as death and taxes. Taxes are scarier as they choke you, almost suck the life out of you when alive. Dodging taxes is what all of us crave for but very few succeed in it. Tax evasion may seem a win in the beginning, but it is actually a huge loss in the long run.Paying your due taxes is a must and compliance with all the tax regulations is an obligation. A sound knowledge of taxes and its compliance is necessary for your business to flourish.
Taxes as we know
The concept of taxation did not break through into our society all of a sudden. Right from ancient times, the rulers imposed tax in the name of ‘bali’ on all yields. people had to pay taxes, in cash or kind. In today’s world, taxes refer to the involuntary fee levied on individuals or corporations by a government entity to finance people governance. Payment of taxes at rates is compulsory and tax evasion is punishable by law. There are two types of taxes : Direct and Indirect Tax.
Here are some of the Taxes, most businesses deal with :
- Income Tax
- Advance Tax
- Minimum Alternate Tax (or) Alternate Minimum Tax
- Tax Deduction at Source
- Central Sales Tax
- Local Value Added Tax (VAT)
- Service Tax
- Central Excise Duty
Want to know the various due dates, activities and filings need to be done by each company for the above ? You will find our Statutory Compliance Calendar useful then ! Click to download.
All transactions related to tax consist of a list of several activities. After careful analysis, it all narrows down to these two basic activities :
- Payment of due tax accurately and in a timely manner
- Reporting(Filing) of the paid taxes on a periodic basis
Know more about these taxes
Income Tax – A Central Government tax levied on the total annual earning of an individual or a profit making business entity. If you are an individual, based on your tax slab, your employer deducts tax on a periodic basis and the total annual tax liability is your income tax for the year.
Advance Tax – All Individuals / companies who cross a certain threshold of estimated income are required to pay advance tax to the IT department on a periodic basis. This can be taken into account at the end of the FY for calculating your tax liability.
Tax Deduction at Source (TDS) – Most companies / Self Employed Professionals are liable to deduct, pay and report TDS on a periodic basis on services received from Individuals / companies.
Central Sales Tax – For every sale of goods from one state to another, CST is charged by the seller. Seller (Manufacturer/Traders) are expected to collect, pay & report their CST activities on a monthly basis.
Service Tax – This tax is levied by the Central Govt on the end user for all services. Service Providers are expected to collect, pay & report their Service Tax Activities on periodic basis.
Value Added Tax(VAT) – This tax of the State Govt is imposed at different stages of production on goods and services whenever value is added to the product. Seller (Manufacturer/Traders) are expected to collect, pay & report their VAT activities on a monthly basis.
How Relativity can ease your tax burden
Optimisation : Tax planning for your organisation is comfortable when you are with Relativity. We go one step further and also minimise taxation for you. This results in your business having a sensible tax planning bundled with optimisation.
Accuracy : At Relativity, all your financial needs and tax compliances are handled with 100% accuracy. Be it a payments, reporting, tax filing or audits, our team of experts with excellent problem solving skills will do it for you the perfect way.
Timely delivery : We are the brains behind processing compliance activities for nearly 200 corporates & SMB’s. It is indeed a proof that we deliver on time as promised. As our team is efficient in the subject matter of finance & taxation, timely delivery is always assured.
Proactive compliance : Helping you with your tax compliance needs is what anyone can do. At Relativity, we act in your best interest guiding you beforehand all about compliance. Being with us you can definitely relax as your compliance activities is in safe hands.
Periodic updates : Our compliance services does not follow just a do-and-deliver method. We care for your tax needs more than you do and always keep you informed about all your financial plans, to-do’s and much more. No more keeping track of your financial checklist as you will never miss out when with us
Travel with us and make your journey towards success easier and faster. Know all about us and our services here.