Friday, 3 July 2015

Taxes a Top Problem for Business

All salaried employees, self-employed employees and companies should file tax returns at the end of the financial year. But there are many clauses and conditions that companies have to satisfy while paying tax. Many companies are facing difficulties with tax filings every time. Those who are doing business should understand the tax laws related with their business so as file it in a correct way. Otherwise, it will be a big headache for them. Ever year that government is amending the tax return clauses and conditions. Those who are not able to keep pace with the ongoing tax amendments have to face tax issues. 

Many who are doing business in the country have the opinion that they are facing lots of challenges in the tax subject. The government of India has given many guidelines on this subject, but still there are many topics that are waiting for getting clarification.  There are different rules and regulations for private limited companies and public limited companies. There are circumstances where companies are not able to give an explanation for a deduction. One should know all the rules and regulations for setting up company and running a company in the country. Otherwise, there will arise many queries and answering all these will be very difficult. To start a business in the country one have to do or undergo many types of procedures. A person who is through with it only can carry out all the procedures successfully. Otherwise, they have to approach a tax consultant or business consultant for assistance. Most of the people find it challenging to meet all the rules and guidelines for starting a business. It is said that normally it will take nearly 27 days to complete all the procedures for staring a new business. After getting permission for beginning a business next is to deal with construction permit. You have to met many departments to get sanction for the building. You should meet electric department, environmental department, water department, sewage department, traffic department and many others for getting sanctions on various areas. Other than getting sanction, you have to pay fees for their assistance. All these will take so many days. Dealing the construction permit is not always easy for many business people. After finishing the construction of the building you should register the property. This requires many types of legal work and registration charges. A business operating in India has to pay nearly 33 different varieties of taxes. Those business people who are not aware of the tax payments related with their business have to face many issues later. Some tax varieties that a business house has to deal with are fuel tax, property tax, dividend tax, central sales tax, vehicle tax, excise duty etc. 

An NRI who is planning to start a business in the country has to know about the culture, company laws and tax laws prevailing here before starting a business. AN NRI start his business here as a branch office, liaison office, project office, society, trust, a profit company or as a non profit company. There are separate laws related with each. One can set up a profit company here provided the business objectives are per Indian Foreign Investment Regulations. The company require directors and shareholders as stated in the FDI regulations. In certain occasions the directors and shareholders shouldn’t be of Indian origin. One has to check on this to get more information. The NRI taxation in India is followed under various clauses and legal regulations. Taxable services are divided under various topics. Tax implications in India have to be checked with a tax specialist. 

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