InvestorQ : What are the tax and statutory related compliance that need to be taken up by a start-up before commencing the business?
Juvina Maggie made post

What are the tax and statutory related compliance that need to be taken up by a start-up before commencing the business?

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Angel dcosta answered.
1 year ago
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There are a series of tax and related compliances and it is better you take all these in the beginning as you don’t need to worry about them later. Here are five key compliances for start-ups.

· Obtain an Income Tax Permanent Account Number (PAN) by filling up Form 49A. After PAN is obtained a printed PAN card would be delivered. The application for PAN can also be made online but documents must be physically sent for verification.

· You must also obtain a Tax Account Number (TAN) by filling Form 49B and submitting at any TIN Facilitation Centre. After verification, the same is sent to the Income Tax Department and TAN is issued. Application for a TAN can be made either online through the NSDL website or offline.

· Register the business under the Office of Inspector, Shops and Establishment Act (State/Municipal). This entails giving a statement containing the employer’s and manager’s names and establishment’s name, postal address and category to the local shop inspector with applicable fees. Establishments must be registered within 30 days of commencement of business.

· Register for Goods & Services Tax (GST) if annual turnover is likely to exceed Rs.20 lakh (Rs.10 lakh for some states). You can just log into the GST portal and follow the simple procedure as instructed.

· Register for Profession Tax at the Profession Tax Office of the state, using Form 1. Every employer is liable to taxation and shall obtain a certificate of registration from the prescribed authority. This has to be mandatorily deducted from employee salaries.

· Finally, register with EPFO and for Medical Insurance. Regional EPFO will allot your start-up an Establishment Code Number (ECN). Medical insure entails coverage under ESIC and an Employer Code Number is issued for the same.

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