Business taxation signifies those taxes that enterprises need to pay as a standard part of business functionality. Whether it's a sole proprietor, partner, or part of an LLP, your business is accountable for abiding by the tax statutes. Furthermore, there are distinct tax consequences for each business type. We provide our clients with the very best tax advice and assistance so that not only do we stay in compliance, we also add value to their business.
Business Taxes & its Types
After discussing about the business taxes, let’s get into the types of business taxes, which are:
- GST (Goods and Service Tax)
- Corporate Tax
- Employment withholding Tax
As a business owner, one needs to handle a variety of expenses, including company taxes. Several components of a business will be subject to taxation, as mandated by the government. Basically, the tax liability is the amount of money you pay to the government, state, and municipal tax authorities. The government will use that tax money to pay for administrative and social services.
Because tax responsibility is a legally bound obligation that needs to be paid to the government or face penalties. It is possible to document short-term obligations simultaneously in the accounting workbook and income statement.
One must pay the applicable tax authorities whenever a taxable event occurs in business. Taxable activities involve making sales, earning taxable income, and issuing payroll. For different taxable events, tax liabilities are based on a percentage of the entire event.
Goods and Service Tax
It is a government tax issued by the legislative on the specific products and services that include, scores of Goods on earth, petroleum, liquor and many more.
As per the Income Tax Act, of 1961, the corporate tax rate has been imposed. It is a direct tax charged on a company's gross profit and income. Corporate taxes are paid on taxable income, minus the deductions of selling and marketing expenses, general and administrative expenses, research and development, depreciation, and other operating costs.
Withholding tax is an amount withdrawn directly from an employee's salary and remitted to the officials in charge of the individual's tax liability. Such taxes are collected by the central government. In India, the Central Government is in charge of and has the authority to impose and collect taxes.
What makes us stand out from other CA firms?
JACK & Associates is a medium-sized firm based in Bangalore with a presence in 20+ other major metropolitan cities since its inception in 2002. In order to create a lasting relationship with our clients, we place the highest importance on meeting their needs. Therefore, our team capitalizes on state-of-the-art tools and software so that it can provide customized services and solutions.