What is GST: Goods and Service Tax (GST) being a tax on supply, every supplier in the State or Union Territory from where he makes a taxable supply of goods or services or both should get GST registration if his aggregate turnover in a financial exceeds prescribed amount of threshold exemption limit.
Am I liable to comply with GST? The threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services is INR 20 Lakh (INR 10 Lakh for the States of Manipur, Mizoram, Nagaland and Tripura). The threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of goods is INR 40 Lakh (INR 20 Lakh in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) w.e.f. 01.04.2019.
What is TDS & TCS: TDS is a withholding tax which is to be deducted by the payer while making a certain type of payment to its vendors and employees. TCS is a tax collected at the source by the seller of the goods or services based on defined criteria. A person deducting the TDS & TCS has to pay the same to the government before the 7th of the succeeding month and quarterly submit the details of tax deducted by way of TDS/TCS returns.
Am I liable to comply with TDS & TCS? Every person or entity making a payment is liable to deduct the TDS or collect the TCS as specified under the provisions and rules of The Income Tax Act. All the individuals, companies, partnership firms, LLPs etc are liable to deduct the TDS/TCS except if an individual or HUF who are not liable to be audited under section 44AB of the act.
What are the consequences if I don’t comply with TDS/TCS provisions? When a person who is liable to deduct the TDS/TCS and pay it to the government fails to deduct or fails to pay the whole or part of the amount shall be deemed to be an assessee in default u/s 201(1). He will be liable for payment of tax, interest, penalty and prosecution as per the provisions of the Act.
What is Professional Tax: Professional tax is a state tax levied by a state on salary, self-employed, firm, LLP & its partners and company & its directors. Each state in India has more or less the same structure for professional tax applicable to the resident of that state. PT amount may vary from state to state which will be subject to a maximum of INR 2,500 per annum. PT of employees needs to be deducted on monthly basis and paid to the government on monthly basis or sometimes annually depending upon the situation.
Am I Liable to comply with Professional Tax? Every business owner is supposed to take two types of registration under Professional Tax laws, one is for the entity which is called PTEC and the other is for employees which is called PTRC. Following states do not levy professional tax, so businesses in these states need not comply with PT
| Arunachal Pradesh |
Haryana |
Himachal Pradesh |
Jammu & Kashmir |
Rajasthan |
| Nagaland |
Uttar Pradesh |
Uttaranchal |
Andaman & Nicobar |
Daman & Diu |
| Dadra & Nagar Haveli |
Delhi |
Puducherry |
Chandigarh |
Lakshadweep |
What is PF & ESI: PF is the social security scheme managed by the government body. In India, Employee Provident Fund Organisation (EPFO) manages the monthly PF savings of the employees wherein employee and employer both contribute equally. ESI is a self-financed insurance and healthcare scheme for Indian Employees wherein employer and employee contribute equally. ESI is managed by Employee State Insurance Corporation (ESIC) in India.
Am I liable to comply with PF & ESI? If your business entity employs more than 20 people, your organisation must register under the EPF scheme. If your organisation employs more than 10 people then you must register under the ESI scheme. In case your organisation is still under the threshold limit and you want to apply for these schemes, you can get voluntary registration for the same.
