Setting up business in India is very difficult now
days. Government is putting procedures to every mandatory formality; there have
been profound changes in legal processes within the country related to
taxation. This can turn your plans into a time-consuming effort. Consider this
– setting up a business in India takes 33 days and closing your business here
takes 10 days. (Source: World Bank’s Report: “Doing Business in 2008”)
According to the same report, the number of procedures involved in setting up
business in India is 13.
India is one of the most favored destination for FDI
over 2010-12(World Investment Prospects Survey 2010-12, UNCTAD). There has also
been significant growth, evident in the rising wealth of India's new
entrepreneurial businesses and in the success of huge middle class.
The new buzz words are
"procedures","efficiency","effectiveness" and
"marketing”. Many foreign companies, sensing India's potential be it any
segment, have also become increasingly involved here. It is easy to do business
in India, and rewarding as well only if you are accustomed to the legalities
involved in the processes and with proper Business Advisory Firm
working with you. A proper Business
Advisory Firm will explores the potential, the problems,
and the possible solutions for doing business in India, whether you are an
established Indian company, a rising entrepreneur, or a foreign company
thinking about coming in. One not only need an overview of tax structure and
current tax rates in India but also require details of elaborate reforms over
the past couple of decades in order to enhance rationality, ensure simplicity
and improve compliance for business units
to work according to mandatory taxation
structure.
India has a
federal system of Government with clear demarcation of powers between the
Central Government and the State Governments. The tax on incomes, customs
duties, central excise and service tax are levied by the Central Government.
The state Government levies agricultural income tax (income from plantations
only), Value Added Tax (VAT)/ Sales Tax, Stamp Duty, State Excise, Land
Revenue, Luxury Tax and Tax On Professions. The local bodies have the authority
to levy tax on properties, octroi/entry tax and tax for utilities like water
supply, drainage etc.
Complex Nature of Taxes: After
the government has levied a tax, changes become necessary to plug loopholes or
to create desirable incentives or disincentives. There are some undesirable
reasons also like political pressure causing rollbacks and put leverages for
certain section. For example, Income has to be defined unambiguously for tax
purpose. Exemptions, deductions and rebates are to be prescribed, and
surcharges are to be introduced for specific purposes. A schedule of tax rates,
audits and many more legal formalities is to be prescribed; failing to do so
may cause hefty penalties. Because of all this, it becomes difficult to know
how much tax a person is supposed to pay, with the help of a proper advisory
firm.
RNA Advisory can be one stop solution for these types
of problems which have people with 25 years of experience accompanied with
young and energetic staff which can understand all new needs of business.
Ritesh Jha is a business consultant and an employee of RNA Advisory Pvt Ltd, one of the leading total business solutions providing company
in Delhi engaged in Company Registration in Delhi and Trademark
Registration Delhi at the best & affordable fees.