Every entrepreneur must be aware of the basics of taxation. Knowing tax laws and the basics of accounting is rather a crucial necessity for entrepreneurs that cannot be overlooked for the good of their business. Every business run in any part of the world needs to pay taxes in some form or the other to the central, state and the provincial government as per the formats and laws applicable in the country of doing business. As entrepreneurs, if you know how the taxation works in your country and the basics of accounting, you can plan your budget and business properly. Tax laws are rather highly tricky and it might not be possible for you to master the whole gamut of this arena. Also, different sectors in a country are governed by different kinds of taxes. Taxes significantly vary across products and geographies. While learning about taxation in a country, you must gain a specific industry and sector related knowledge that you can directly apply in your business. While there are auditors and finance experts who can assist you with taxation and accounting, entrepreneurs can ensure the financial and legal health of the organization by acquiring the basic knowledge of taxation. The benefits of strictly complying with the tax laws and paying the necessary taxes are noteworthy. They can secure the future of your business and put you at peace at all times. In addition, properly paying all the taxes applicable is an important corporate and social responsibility of businesses and can help improve your brand image.
While tax evasion is a serious offense, with proper planning you can significantly reduce the tax payable. There are several types of taxes categorized under direct and indirect taxes with the well known types including income tax, sales tax, and service tax. Individuals and businesses need to be aware of the various statutes, procedures and processes regarding taxation. Tax filing is a crucial necessity to run businesses. Non-filing under the applicable status will invite heavy penalties. Tax planning and IT return preparation is a cumbersome process which expert auditors can simplify for you through their able assistance. They can assist you with the various processes including preparing the application and support documents, coordinating with the tax officials, and obtaining your tax registration certificate.
Through their knowledge and insight into taxation in the Indian context, qualified auditors can offer effective tax consultation services under challenging scenarios. They can closely work with your business process and financial statements to give you the right direction and course with regard to tax planning. The approach they give can be of significant help in tax planning and developing your business. While choosing the auditor for your tax planning, look into factors including whether the experts can offer expert assistance personalized for your specific situation; whether the fee charged is nominal; whether they can give complete assistance from planning to paying; whether they have ready-made documentation; and can quickly process documents. Good auditors must be able to coordinate well with your finance department to prepare the necessary documents and get your IT returns filed on due date to avoid complexities and losses.