Rigours of Complying
Rajan had graduated from IIT, Madras. Under the guidance of the institute’s Incubation Cell, he set up his own private limited company and a factory to manufacture an eco-friendly range of construction materials. Years later, he browsed through the status of the company. “Company incorporated ….. Check! Client queuing up……… Check! Profits………….. Absolutely! Slew of non-compliance notices from various authorities ………. Check! Wait… What? Non-compliances? He thought, “I have paid taxes on the income. I have filed the income tax return. So where does the question of non-compliance arise?” So he approached his close friend and entrepreneur to gain some clarity about it.
Rajan learnt that there were various authorities such as the Registrar of Companies, Income Tax Department, Excise Department among others to track the running of each business in the country. There are various compliances to be adhered to, depending on the line of business and the nature of the entity. He stated that the compliances can be broadly classified as Legal compliances such as Companies Act, Shops and Establishments Act, Labour Laws and so on and Finance related Compliances such as Income Tax, Service Tax, Excise Duty and so on. After this he went on to say that since each Compliance is an ocean of its own, he shall approach each one separately.
Continued in the Next Part……………………………