India is a land of many laws. All businesses will have to comply with various Acts, Laws, Rules and Regulations in a normal course of business such as Income Tax Act, Income Tax Rules, Companies Act 2013, Goods and Service Tax, Limited liability Partnership Regulations, Partnership Act, Labour Act etc.
Beginning with the Institute of Chartered Accountants of India (ICAI): ICAI is an autonomous body consisting of accounting professionals. ICAI issues accounting standards providing guidelines for disclosures of financial information. Section 129 of the Companies Act inter alia provides that the financial statements shall give a true and fair view of the state of affairs of the company or companies. They shall comply with the accounting standards notified under s 133 of the New Companies Act. It is further provided that items contained in such financial statements shall be in accordance with the accounting standards.
For a small business owner who is carrying out day to day business operations, it is difficult to keep track. He will have to refer different books for various laws, which makes compliance more complicated. Hence, there is a need to have a consultant who will assist businesses.
Compliance requires
1. Income tax preparation
2. Company law compliance
3. Certification
4. TDS return preparation
5. Goods and Services Tax
6. Provident Fund
Compliance also includes payment of taxes within stipulated time. Reporting such payments by documents called "Returns" to the authorities before due dates. Collecting, Issuing and submitting various certificates and documents.