Author Profile

Legal India

Posted On by &filed under Format of Legal Documents Drafting, Legal India, Public Utilities.


Registering your company or business entities with different Tax Authorities like Income Tax, PAN, TAN, Service Tax, Sales Tax, VAT

Registering your company or business entities with different Tax Authorities like Income Tax, PAN, TAN, Service Tax, Sales Tax, VAT

Taxation authority is a government agency responsible for the intake of government revenue, including taxes and sometimes non-tax revenue. Depending on the jurisdiction, revenue services may be charged with tax collection, investigation of tax evasion, or carrying out audits.So If you are registering your company or business entities then take permission from tax authorities for following procedures –

Income Tax – An income tax is a tax imposed on individuals or entities. Income tax generally is computed as the product of a tax rate times taxable income. The tax rate may increase as taxable income increases (referred to as graduated rates). Taxation rates may vary by type or characteristics of the taxpayer. Capital gains may be taxed at different rates than other income. Credits of various sorts may be allowed that reduce tax. Some jurisdictions impose the higher of an income tax or a tax on an alternative base or measure of income.

PAN – Bermanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more. The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

TAN – Tax Deduction and Collection Account Number is a ten digit alphanumeric number that’s allotted to those who are supposed to deduct tax at source or TDS. TAN number or TAN registration is very important for businesses deducting tax at source and is required to be quoted in TDS or TCS return.

Service Tax – Service tax is applicable for taxable service provider. It’s levied by Central Government of India on services provided or to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax.

Sales Tax – A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase.

VAT – A value-added tax is a type of general consumption tax that is collected incrementally, based on the value added, at each stage of production and is usually implemented as a destination-based tax, where the tax rate is based on the location of the customer.

For Tax related query and services contact us – 

 


Leave a Reply

Be the First to Comment!

Notify of
avatar
wpDiscuz