Tax Related Laws
Many a time entrepreneurs get lost in the compli-
cated maze of taxation laws. Operational knowledge of taxation legislation can help entrepreneurs save lot of money.
The new entrepreneur is required to register his unit with the Sales Tax Department of a particular state.
This entitles the entrepreneur to import machines, raw materials at a concessional rate of CST. This is only possible if the particular unit is registered with the Sales Tax Department. Before a unit is registered an entrepreneur has to comply with certain formalities.
The entrepreneur has to observe the provisions of
the following laws:
1. Income Tax Act
2. Central Excise and Sales Act, 1944
3. Central Sales Tax Act/State Sales Tax Act
4. Professional Tax.
Central Excise Act requires every unit to file a declaration with the Range office as soon as the new unit comes into production. The format of declaration is prescribed in the Central Excise Rules. Medium and large-scale units are required to take out an L-4 licence before starting production.
The Income Tax Act, 1961 mandates that as soon as the unit comes into existence, it is required to be registered with the ITO under whose jurisdiction the unit is established. At the time of submission of application, certain documents are to be filled. In case of companies, Form No.49A application for allotment of permanent account number is required to be submitted. This Act makes provisions regarding the tax deduction at source, submission of return,disallowance, certain concessions, repayment of cash credits, etc.
Product and Process Related Laws-
1. Bureau of Indian Standards Act, 1986
2. Drugs and Cosmetics Act, 1940
3. Essential Commodities Act, 1954
4. Packaged Commodities Regulation Order, 1975
5. Pharmacy Act, 1948
6. Standards of Weight & Measures Act, 1976
7.Trade and Merchantile Marks Act, 1958
8. The Prevention of Food Adulteration Act, 1954
Other Central Acts-
1. Collection of Statistics Act, 1953.
2. Indian Electricity Act, 1910.
3. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.
4. The Insolvency Act