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Annual Compliances for Proprietorships in India

Sole Proprietorships of India have only the minimal statutory compliances, which are much lesser than those applicable to the private or public limited companies. It is mainly because of the fact that a sole proprietorship has a no separate legal entity different from its owner or proprietor, and this form of business entity does not avail the benefits of limited liability. The annual income of the proprietor is considered the annual income of the sole proprietorship firm.

Hence, like other business/service entities which are registered under the Ministry of Corporate Affairs, the sole proprietorship firms are not required to file any annual report or financial statements with the MCA. The main and major statutory compliances to be made by these proprietorship firms are thus tax related periodic and annual compliances. However, some more periodic or annual compliances may also be required for the purposes of business regulation/recognition. Thus, the major compliances for proprietorships in india, are the following:

  • Sales Tax/VAT Returns Or the Service Tax Returns
  • Annual Income Tax Returns

The due dates for filing these tax returns are as follows: ---

Sales Tax (VAT) Returns: --- These are to be filed in every quarter of the assessment financial year, on the following prescribed dates ---

  • For April to June - July 25
  • For July to September - October 25
  • For October to December - January 25
  • For January to March - April 25

Service Tax Returns: --- These are filed on half yearly basis, on the following due dates of the assessment financial year ---

  • For April to September - October 25
  • For October to March - April 25

Income Tax Returns: --- ITR is filed on yearly basis, on the following dates depending upon the necessity of financial/tax audit ----

  • When audit is not necessary under any law - July 31 of the assessment financial year
  • When audit is compulsory under any law --- September 30 of the assessment financial year. This gets applied when the annual turnover of the proprietorship firm is over INR One Crore; Or the Service Turnover is more than INR 25 Lac.
To receive our efficient and expert compliance services, sole proprietorship firms of India, may readily contact us over: +91-8800-100-284; or send their respective queries or problems to: contact@Company-Registration.in .