Proprietorship is a kind of business entity, that is managed, controlled or run by one person. It’s a very common form of business in India. It’s very easy to start a proprietorship because it requires minimal regulatory compliances. The annual compliances of a sole proprietorship firm involved, the complete holding of your annual requirements.
Tradenfill is the largest business services platform in India which is offering a variety of services like Partnership, GST Registration, Labour License, Trademark Registration, Shop Establishment License and many more. Tradenfill is here to help you to maintain compliance with your proprietorship. Get a free consultation for proprietorship compliance maintenance through Tradenfill by scheduling an appointment with a Tradenfill Advisor.
Reasons to Major Compliances
There are mainly some reasons behind the compliance for a Proprietorship like;
- Income Tax Filing
- GST Filing
- ESI Return
- TDS Filing
- Service Tax or VAT
Documents Required for Annual Compliances for Proprietorship
These are some documents which are required for annual compliances:
- Invoices of Purchases and Sales during the year.
- Invoices of expenses incurred during the year.
- Statement of the Credit Card if expenses are incurred by Proprietor on behalf of the Company.
- Required Bank Statements from 1st April to 31st March for all bank accounts in the name of the firm.
- Copy of VAT or service tax returns filed.
- Copy of TDS Challans Deposited.
- Copy of TDS Returns filed.
The Procedure of Annual Compliances for Proprietorship is like that; after submission of the documents, the balance sheet of the business is prepared. On the basis of the accounts of the business, the Income Tax Return of the proprietorship is filed if the turnover is more than Rs. 2.5 Lakh. The Tax Audit is required if the annual turnover of the business is more than Rs 1 Crore. The ITR must be filed before 31st July in case if there is no audit is required. If a tax audit is required, the ITR must be filed before September 30th.