Don’t Know What Compliances Are Applicable To Your Company? Here’s All The Information You Need.

27 Jun 2022 | Finance, Tax Tips

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Hooshang Bakht

Brego Business was started with a mission to make entrepreneurship easy. Our goal is to help business owners grow and scale without having to deal with the day-to-day stress of running a business. We specialize in providing services that help business owners grow their businesses, including search engine marketing (SEM), social media marketing (SMM), LinkedIn marketing, video production, accounts receivable (AR), accounts payable (AP), internal audit, VCFO, and recruitment. We have helped more than 500 brands grow their businesses. We work closely with the clients to understand their unique needs and develop customized strategies that deliver measurable results.

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Tax Compliances

Do you always fear that your team is missing out on meeting tax compliances? Are you awaiting the impending doom of being punished with penalties? With several different types of compliances to meet, it can be slightly difficult to choose which compliances are applicable to your company.

Here, we’re giving an exact list of compliances as per your company type, and everything you need to know on the subject.

So, if you thought you only had to file your taxes, you were wrong.

Tax compliance, in simple terms, refers to nothing but a set of rules & regulations made by legal authorities to ensure timely and accurate tax submission. Sometimes, it can be tough to abide by each law, especially in India. But not complying with those laws might lead to legal troubles and loss of future business opportunities that might come along.

A basic example of tax compliance is Income Tax Return (ITR) filing. Individuals or companies that fail to file their ITRs before the due date are considered noncompliant. Failure to comply with the tax can lead to penalties and legal troubles.

Do you think that filing your tax alone can work? You might be wrong because there are two types of compliances that your business has to comply with. Here is a definition of two most important compliances that you are likely to misunderstand.

A statutory audit is one that is required by The Companies Act of 2013. The goal of this audit is to verify the accuracy and fairness of accounting records.

A tax audit, on the other hand, is described as an examination of a taxpayer’s books and records in order to meet the requirements of Section 44AB of the Income Tax Act of 1961 for determining the exact income of the assessee.

Here is a quick brief on both types of compliances.

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A statutory audit is one that is required by The Companies Act of 2013. The goal of this audit is to verify the accuracy and fairness of accounting records.

A tax audit, on the other hand, is described as an examination of a taxpayer’s books and records in order to meet the requirements of Section 44AB of the Income Tax Act of 1961 for determining the exact income of the assessee.

Here is a quick brief on both types of compliances.

Point of  Difference Statutory Compliance Tax Compliance
Governing Act The Companies Act of 2013 (section 143) The Income Tax Act of 1961, Section 44AB
Applicability All companies registered under the Companies Act 2013 and previous Companies Acts are subject to statutory audits. All Corporations, LLPs, Partnership Firms, as well as Individuals or Professionals, whose turnover or Gross Receipts exceed the threshold level, are subject to a tax audit.
Threshold Limit For Statutory Audit, there is no limit on Turnover or Gross Receipts. It is required of every firm, even if it has no revenue or has not yet started doing business. Businesses whose total sales, turnover, or gross receipts for the year exceed Rs. 1 crore are required to undergo a tax audit.

Professionals whose gross receipts for the year exceed Rs. 50 lakhs are required to undergo a tax audit.

Purpose The goal of the statutory audit is to guarantee that the Company’s financial statements are reliable, transparent, truthful, and fair. The goal of a tax audit is to ensure that the books of accounts are properly maintained to accurately reflect the assessee’s taxable income, as well as the production and submission of a Tax Audit Report and an Income Tax Return.
Due Date The Statutory Audit should be completed within 6 months of the Financial Year’s end, but before the Annual General Meeting at which the Audited Accounts are presented to the Shareholders. For a Financial Year, the deadline for completing a Tax Audit and filing a Tax Audit report with the Income Tax Department is September 30th of the following year (Assessment Year).
Penalty for Non-compliance Non-compliance carries the following penalty:
For the business:
The price ranges from Rs. 25,000 and Rs. 5,00,000/-.
For each officer who is in default:
A year in prison is possible.
Fines ranging from Rs.10,000 to Rs.1,000,000
If a Taxpayer fails to conduct an Audit of Accounts, he or she will be fined the lesser of the two amounts: 0.5 percent of total sales, turnover, or gross receipts.
a sum of Rs. 150,000

These compliances might vary from business to business. The different types of legal entities in India are as follows.

Types of legal entities in India

There are seven types of entities legally recognised in India, namely the Private Limited Company, the Limited Liability Partnership (LLP), the Sole Proprietorship, the Public Company, the One Person Company, and the Partnership.

Private Limited Company

A private limited company is a corporate entity owned by private investors.

Limited Liability Partnership (LLP)

Restricted liability partnerships (LLPs) are a type of partnership in which each partner’s liability is limited to the amount invested in the company.

Sole Proprietorship

A sole proprietorship, also known as a sole tradership, individual entrepreneurship, or proprietorship, is a type of business owned and operated by one person in which the owner and the business entity have no legal distinction.

Public Company

An initial public offering (IPO) is when a firm sells all or part of its stock to the public (IPO). A new example of this is Paytm.

One Person Company

According to Section 2(62) of the Firms Act, 2013, a one-person company is one that has only one stakeholder and can be distinguished from private companies.


By definition, a partnership firm is formed when two or more persons pool their resources to form a company and agree to share risks, profits, and losses.


A cooperative is described as a user-owned and managed firm that derives and distributes advantages equitably based on usage, or a business owned and controlled by the people who use its services.

Are you wondering what compliances your company needs to meet? Below is a table to give you a better idea.

A complete list of tax compliances

There are almost nine types of taxes in India that break into two: Direct and Indirect tax. When talking about tax compliances for companies, there are two types of compliances;

External Compliance

Every tax in India is backed by law and controlled by legal authorities. External compliance refers to the rules, laws and standards set by the government authorities to protect the organisation’s goodwill. Complying with these laws help companies build strong public relations, trust, and transparency. Furthermore, it assists in eliminating unwanted duplication of resources.

Internal Compliance

Internal compliance refers to the set of rules and regulations followed by the internal members of the company, including employees, owners, traders, and clients. Complying with these regulations ensures the company’s utmost quality of services and products. An organisation can only abide by external compliances if it aligns with internal rules & regulations.

Type of Business Compliance Applicable Due Date
Pvt. Ltd. and OPC
  • MSME Form 1
  • DPT 3
  • Income Tax Filing
  • Director KYC
  • AOC 4
  • MGT7
  • ADT-1
  • 31 October 2022 (for April to September)
  • 31st June 2022
  • 18th April 2022
  • 30th September 2022
  • N/A
  • 31st March 2022
  • N/A
Sole Proprietorship and Partnership
  • Income Tax Filing
  • Director KYC
  • PAN registration
  • PTEC for Individual 
  • 18th April 2022
  • 30th September 2022
  • 30th June 2022
  • Form 11
  • DPT 3
  • Income Tax Filing
  • Director KYC
  • Form 8
  • 30th May 2022
  • 31st June 2022
  • 30th September 2022
  • 30th October 2022

Here’s What These Compliance Mean And Why You Need To Abide By These

Managing tax compliances can be a tough job; that’s why most people turn to taxation and accounting professionals. However, as a business owner, you must know what these compliance mean for your business. One way to simplify the process is by using accounting software for small businesses. Such software can help you keep track of your finances, generate reports, and assist you in filing your tax returns accurately.

Using accounting software for small businesses can make managing tax compliances much easier. The software can keep track of important deadlines for tax payments and filings, and it can also help you prepare and file your tax returns accurately. Additionally, accounting software can help you keep track of all your business expenses, including tax-deductible expenses, which can help you minimize your tax liability.

Moreover, accounting software for small businesses can help you maintain accurate financial records, which is essential for complying with tax regulations. The software can generate reports such as profit and loss statements, balance sheets, and cash flow statements, which can help you understand your business’s financial health and make informed decisions.

In summary, while managing tax compliances can be challenging, using accounting software for small businesses can simplify the process significantly. By automating key tasks and generating accurate financial reports, the software can help you stay compliant and avoid costly mistakes.

• MSME Form 1

The MSME I Form is used to send information to the Registrar of Companies on a half-yearly basis regarding unpaid payments to Micro or Small Enterprises for more than 45 days (ROC).

• DPT 3

The DPT-3 form is a one-time loan return form that must be filed by any business with outstanding loans that are not considered as deposits.

• Income Tax Filing

The Income Tax Department of India requires businesses to file an Income Tax Return (ITR). It gives details on the company’s earnings and the taxes that must be paid during the year.

• Director KYC

The Ministry of Corporate Affairs (MCA) launched a new approach in 2018 called Directors’ KYC to verify the existence of company directors. The Directors’ KYC is updated using this form.

• AOC 4

Every financial year, Form AOC 4 is filed with the Registrar of Companies to file the company’s financial statement.

• MGT7

MGT 7 is an electronic form that the Ministry of Corporate Affairs assigns to all corporations for the purpose of filing yearly return information.

• ADT-1

After the annual general meeting, a business must submit Form ADT-1 to the registrar of companies to notify him or her of the appointment of an auditor (AGM).

• PAN Registration

The company’s PAN card serves as documentation of its existence. When filing the firm’s income tax returns, the partners must present the partnership deed or certificate of registration, as well as PAN card form 49A.

• PTEC for Individual

The acronyms PTEC and PTRC stand for Professional Tax Enrolment Certificate and Professional Tax Registration Certificate, respectively.

• Form 8

A “current report” is a filing that corporations must make with the Securities and Exchange Commission (SEC) to disclose significant events that shareholders should be aware of. When it comes to tax planning for your business, there are several financial opportunities to be gained if executed under the right framework. However, it’s always best to work with a professional tax and accounting company to ensure intelligent decision-making and hassle-free execution. At Brego Business, we provide full-service taxation and accounting services to help you reduce tax deductibles and maximize profits. Our experts can even assist you in finding the best accounting software to streamline your business processes and improve financial outcomes. Don’t miss out on financial opportunities – contact us today to learn more about how we can help you optimize your business’s tax strategy!

If you run a business, you know how important it is to stay compliant with all the legal regulations that apply to your industry. However, keeping up with tax and company compliances can be overwhelming and time-consuming. You might not even know which compliances are applicable to your company. That’s where Brego Business digital marketing services can help you stay compliant and focus on growing your business while utilizing accounting software basics.

As a professional tax and accounting company, Brego Business have years of experience helping businesses navigate the complex world of compliances. They work closely with their clients to understand their unique needs and provide tailored solutions that address their compliance requirements. They can even help businesses set up and use accounting software basics to manage their finances more efficiently.

One of the biggest advantages of working with Brego Business is that they keep track of all the changes in the compliance landscape. This means you don’t have to worry about missing any deadlines or updates that could potentially put your business at risk. By utilizing accounting software basics, they’ll make sure you’re always up to date and compliant with all the relevant regulations.

Brego Business digital marketing services also use the latest technology, including accounting software basics, to streamline the compliance process. They offer online platforms that allow their clients to access their compliance records, manage their documents, and submit their compliance reports seamlessly. By using accounting software basics, they can help you keep track of your finances, generate reports, and assist you in filing your tax returns accurately.

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Frequently asked questions

What are the basics of accounting software?

Accounting software is a digital tool designed to help businesses manage their financial data, including recording transactions, generating financial statements, and tracking expenses. The software typically automates many of the manual processes involved in accounting, saving time and improving accuracy.

Does Brego Business provide accounting software for small businesses?

Yes, we offer accounting software tailored to the needs of small businesses. Our software is user-friendly, affordable, and easy to set up. We also offer training and support to ensure that our clients get the most out of their software.

What is advanced accounting software?

Advanced accounting software typically includes more features than basic software, such as advanced reporting capabilities, inventory tracking, payroll processing, and multi-currency support. It is designed for larger businesses or those with more complex financial needs.

What is the best accounting software?

The best accounting software for your business depends on your specific needs and budget. At Brego Business, we offer a range of options from basic to advanced software to meet the unique needs of our clients.

What is eCommerce management and accounting software?

ECommerce management and accounting software is designed specifically for businesses that sell products or services online. It typically includes features such as inventory management, order tracking, and payment processing integration. At Brego Business, we offer eCommerce management and accounting software to help our clients streamline their online operations.

Does Brego Business provide bookkeeping services?

Yes, we offer bookkeeping services to help businesses manage their financial data. Our team of experienced professionals can handle everything from basic data entry to more complex accounting tasks, freeing up our clients' time to focus on growing their business.

Can Brego Business help with tax preparation?

Yes, we offer tax preparation services to help our clients stay compliant with tax regulations and maximize their deductions. Our team of tax experts stays up-to-date on the latest tax laws and regulations to provide the most accurate and effective tax preparation services.

How much does Brego Business charge for accounting services?

The cost of our accounting services varies depending on the specific needs of our clients. We offer customized solutions to meet each client's unique needs and budget. Contact us for a free consultation and quote.

What types of businesses does Brego Business work with?

We work with a wide range of businesses, from small startups to large corporations. Our team of experienced professionals has the expertise to handle the financial needs of businesses in many different industries.

What sets Brego Business apart from other accounting firms?

At Brego Business, we pride ourselves on delivering personalized service tailored to the unique needs of each client. Our team of experienced professionals has the expertise to handle even the most complex financial challenges, and we are committed to providing the highest level of customer service and support.

Compliance is a critical aspect of running a business, ensuring that companies adhere to legal requirements and standards. However, understanding what compliances apply to your business can be a daunting task. In this article, we will provide you with all the information you need to ensure your business is compliant, and we will also discuss how Brego Business Digital Marketing services can assist you in meeting your compliance requirements.

Brego Business Digital Marketing provides a range of services that can help businesses navigate their compliance requirements. Their team of experts is well-versed in accounting software basics and can assist businesses in selecting the best accounting software for their specific needs. They can provide guidance on advanced accounting software solutions, ensuring that businesses have access to the tools they need to stay on top of their compliance requirements.

For small businesses, Brego Business Digital Marketing offers eCommerce management and accounting software solutions. These services can help businesses streamline their operations, ensuring that they are meeting their compliance requirements while minimizing the impact on their day-to-day activities.

By working with Brego Business Digital Marketing, businesses can ensure that they are up-to-date with all their compliance requirements, including tax obligations, data privacy laws, and industry-specific regulations. Their team of experts can provide businesses with the support they need to manage their compliance obligations effectively.

In conclusion, ensuring compliance can be a challenging task for businesses. However, by working with Brego Business Digital Marketing, businesses can navigate their compliance requirements with ease. Their expertise in accounting software for small businesses, advanced accounting software solutions, and eCommerce management and accounting software can help businesses meet their compliance requirements while minimizing the impact on their day-to-day operations.

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