Did you know India’s e-commerce market is expected to reach US$99 billion by 2024? This makes India the second-largest e-commerce market, just behind the US. As the digital market grows, so does the need for tax compliance. The GST registration process for e-commerce operators is now essential for legal and smooth business operations. The Central Board of Excise & Customs (CBEC) has set up special rules for e-commerce GST registration. This is because the sector is growing fast and has complex tax issues. If you sell online or plan to start an e-commerce business, knowing these rules is crucial for your success. Now, e-commerce business tax compliance is a must. Section 24 of the Central Goods and Services Tax Act, 2017 requires all e-commerce operators to register for GST. This includes collecting a 1% tax on each transaction, except for exempted goods and services. As an e-commerce operator, you must collect Tax Collected at Source (TCS) at a maximum rate of 1% on the ne...
As the financial year ends, Indian taxpayers need to understand their tax audit duties for A.Y 2024-25. The Income Tax Act of India says some taxpayers must have their finances checked by a chartered accountant. But, do you know who needs an audit and what happens if you don’t follow the rules? Key Takeaways Businesses with a turnover up to Rs. 1 crore are exempt from tax audits, regardless of their profit rate. Professionals with gross receipts up to Rs. 50 lakhs are also exempt from tax audits, regardless of their profit rate. Businesses with a turnover exceeding Rs. 10 crores are mandated to undergo a tax audit. Professionals with gross receipts exceeding Rs. 50 lakhs are required to undergo a tax audit. Taxpayers under presumptive taxation schemes may be subject to tax audits if they declare profits below the prescribed limits. Understanding Tax Audit and Its Objectives A tax audit is when a chartered accountant checks a taxpayer’s financial records and documents. Thi...