About Proprietorship Compliances

Proprietorship compliances encompass the legal and regulatory requirements that sole proprietorships must adhere to in order to operate their businesses in a compliant manner. These requirements cover various aspects of business operations, including taxation, registration, and record-keeping.

Applications for Filing

Proprietors need to file various returns and make timely payments to comply with tax regulations. The specific returns and payments depend on the nature of the business and the turnover of the proprietorship. Some common compliances include:

• GST Registration and Returns: If the turnover of the proprietorship exceeds the prescribed threshold, it is mandatory to register for Goods and Services Tax (GST) and file GST returns regularly.
• Income Tax Returns: Sole proprietors are required to file income tax returns annually, declaring their income from the business and paying the applicable tax.
• TDS Returns: If a proprietorship deducts tax at source (TDS) on payments made to certain individuals or entities, it must file TDS returns periodically.
• Shop Act Registration: In some states, shop act registration is mandatory for proprietorships operating retail or commercial establishments.

Eligibility

The eligibility for various compliances depends on the specific nature of the business and its turnover. For instance, GST registration is mandatory for proprietorships with a turnover exceeding Rs. 20 lakh (Rs. 10 lakh for special category states), while income tax filing applies to all proprietorships with taxable income.

Documents Needed

The documents required for different compliances vary depending on the specific requirements. However, some common documents include:

• PAN (Permanent Account Number) of the proprietor
• GSTIN (Goods and Services Tax Identification Number), if applicable
• Business address and contact details
• Details of business activities
• Financial records, including sales and purchase invoices
• Tax registration certificates (GST, shop act, etc.)