Tax compliance is a critical aspect of running a business in India. With the introduction of Goods and Services Tax (GST) and the existing Tax Deducted at Source (TDS) requirements, companies must ensure that they comply with the complex tax regulations to avoid penalties and legal consequences. This guide will walk you through the benefits and services offered by GST advisory and TDS advisory firms in Noida, a growing hub for businesses and startups.
GST Advisory Services in Noida
GST is a complete, multi-stage, destination-based tax that is levied on every value addition. Proper GST compliance is essential to avoid penalties and ensure smooth business operations. Businesses in Noida can benefit greatly from GST advisory services, which ensure that they comply with all aspects of GST law, including registration, return filing, and claiming input tax credits.
Key Services Provided by GST Advisory Firms:
- GST Registration:
- Assistance in obtaining a GSTIN (Goods and Services Tax Identification Number), which is mandatory for businesses with a turnover exceeding ₹40 lakhs (₹10 lakhs for certain states).
- Ensuring timely registration and filing the necessary documents on the GST portal.
- GST Return Filing:
- Filing of monthly, quarterly, and annual GST returns such as GSTR-1, GSTR-3B, GSTR-9, etc.
- Ensuring accurate and timely filings to avoid interest or penalties for late submissions.
- Input Tax Credit (ITC) Management:
- Assisting businesses in claiming Input Tax Credit on purchases, which helps reduce tax liabilities.
- Advisory on how to maximize ITC claims while staying within legal compliance.
- GST Compliance Audits:
- Periodic GST audits to ensure that all GST filings are accurate and all transactions comply with the applicable laws.
- Identifying any discrepancies or non-compliance issues that may arise and helping businesses rectify them.
- GST Refund Assistance:
- Helping businesses apply for refunds under GST, such as in cases of export or excess tax paid.
- Ensuring that the refund process is smooth and in line with the legal framework.
- GST Litigation Support:
- Offering support in case of any disputes or notices from GST authorities.
- Representing clients before GST officers, appellate tribunals, and courts, if necessary.
- Sector-Specific GST Advice:
- Tailored advice for specific sectors, such as e-commerce, real estate, IT services, and manufacturing.
- Addressing industry-specific GST challenges, such as reverse charge mechanism (RCM) or sectoral exemptions.
TDS Advisory Services in Noida
TDS (Tax Deducted at Source) is a method of tax collection where tax is deducted by the payer at the time of payment and deposited to the government. TDS compliance is critical for businesses as it ensures proper tax deductions and filings under the Income Tax Act. Incorrect or late filing of TDS returns can result in penalties.
Key Services Provided by TDS Advisory Firms:
- TDS Compliance Management:
- Advising businesses on their TDS obligations, including understanding which payments attract TDS (e.g., salaries, contractor payments, rent, professional fees).
- Ensuring timely deduction of TDS and deposit to the government within prescribed deadlines.
- TDS Return Filing:
- Filing quarterly TDS returns (Forms 24Q, 26Q, 27Q, etc.) with accurate details of deductions made.
- Avoiding penalties by ensuring compliance with timelines and filing correct returns.
- TDS Certificate Issuance (Form 16 and Form 16A):
- Assisting businesses in issuing Form 16 (for salaried employees) and Form 16A (for other payments subject to TDS) to deductees.
- Ensuring timely distribution of certificates to employees and vendors.
- Lower/Nil TDS Certificate:
- Helping businesses apply for lower/nil deduction certificates if their vendors are eligible for reduced or no TDS deduction.
- Filing Form 13 with the tax authorities to obtain these certificates.
- TDS Reconciliation:
- Matching the TDS deducted and reported in TDS returns with Form 26AS to ensure that there are no mismatches.
- Assisting businesses in rectifying any errors that may arise during reconciliation.
- TDS Notices and Resolution:
- Offering advisory on how to handle TDS notices from the Income Tax advisory Department, including late filing or incorrect deduction notices.
- Filing revised returns or responding to notices to resolve disputes.
- TDS on Cross-Border Payments:
- Advising businesses on TDS implications for payments to non-residents or foreign companies.
- Assisting in the proper deduction of TDS under Section 195, taking into account Double Taxation Avoidance Agreements (DTAA).
Why Businesses in Noida Need GST and TDS Advisory Services
- Complex Regulatory Environment:
With constant changes in tax laws, businesses in Noida need expert advisory services to stay compliant with GST and TDS regulations. This is particularly important for startups and SMEs that may not have in-house tax expertise.
- Avoidance of Penalties:
Late or incorrect filing of GST returns or TDS returns can lead to hefty fines and penalties. GST advisory and TDS advisory services ensure timely and accurate filings, avoiding unnecessary costs and legal issues.
- Better Cash Flow Management:
With expert advice on input tax credit claims and TDS reconciliation, businesses can improve their cash flow by reducing their tax liabilities and optimizing refunds.
- Assistance with Tax Audits and Assessments:
For businesses facing GST or TDS audits, having a dedicated advisory firm helps in responding to queries from tax authorities and resolving discrepancies quickly.
- Customized Tax Solutions:
Income Tax advisory firms provide tailored advice based on the specific needs and industry of the business. Whether it’s piloting complex GST rules for e-commerce businesses or managing cross-border TDS implications, expert advisors ensure that businesses stay compliant without overpaying taxes.
Frequently Asked Questions (FAQs)
- Is GST registration mandatory for all businesses in Noida?
GST registration is mandatory for businesses with an annual turnover exceeding ₹40 lakhs (₹10 lakhs for service providers in specific states). Businesses engaged in interstate trade or e-commerce must also register for GST.
- What happens if I don’t file my TDS returns on time?
Late filing of TDS returns attracts a penalty of ₹200 per day, subject to the amount of TDS payable. The penalty can go up to a maximum of the TDS amount deducted.
- Can I claim a refund under GST?
Yes, businesses can claim a refund under GST for various reasons, including excess tax paid, input tax credit on exports, or inverted duty structure. A GST advisory firm can help file the refund claim.
- What payments are subject to TDS?
TDS is applicable to payments such as salaries, professional fees, contractor payments, rent, commissions, and payments to non-residents. The rate of deduction depends on the type of payment and the recipient’s tax status.
- Can TDS be deducted on foreign payments?
Yes, TDS must be deducted on payments made to foreign entities under Section 195 of the Income Tax Act. The applicable rate depends on the nature of the transaction and may be subject to DTAA benefits.
- How often do I need to file GST returns?
GST returns must be filed monthly (GSTR-1 and GSTR-3B) or quarterly (under the Quarterly Return Filing and Monthly Payment Scheme for smaller businesses). Annual returns (GSTR-9) are also required.
Conclusion
Businesses in Noida can benefit significantly from professional GST Advisory and TDS advisory services. Whether you are a startup, SME, or established enterprise, ensuring compliance with tax regulations is critical to avoid penalties and optimize your financial performance. Expert advisors help direct the complexities of GST and TDS, enabling businesses to focus on growth while ensuring their tax matters are in order.
Author: Vibhay Ranjan
I am working at GENZCFO as Content Executive. Researching and writing content on various legal, tax and compliance topics are my key areas, and I am happy to add values to the posts I publish. You can reach out to me at +91 93113 47006 for any question you may have regarding Virtual CFO, Interim CFO, CFO Services, Industry CFO.
