Tax Compliance for Mall Owners to avoid tax compliance and audit issues in India:
1. Tax Registration And Filing:
Tax Compliance for Mall Owners in India must ensure timely and accurate registration under the Goods and Services Tax (GST) regime.
They should regularly file GST returns, including GSTR-1 (outward supplies) and GSTR-3B (summary return), to report their taxable transactions. Maintaining proper documentation of invoices, input tax credits, and related records is essential.
This compliance measure helps prevent discrepancies that might trigger a tax audit.
2. Transfer Pricing Documentation:
If the Mall Owners have multiple related entities or transactions with associated enterprises, they need to adhere to transfer pricing regulations.
This involves maintaining detailed documentation supporting the arm’s length nature of their transactions.
Thorough documentation of pricing methodologies, benchmarking analyses, and economic justifications can prevent transfer pricing disputes during tax audits.
3. Record Retention And Documentation:
Mall Owners should maintain comprehensive financial records, including income statements, balance sheets, and cash flow statements.
Proper documentation of all financial transactions, contracts, agreements, and supporting documents is crucial.
These records should be retained for the prescribed statutory period, typically seven years, as they serve as evidence during tax audits and help substantiate the accuracy of reported income and expenses.
To visit: https://www.mca.gov.in/
By diligently following these compliance measures, Mall Owner can significantly reduce the likelihood of tax compliances and audit issues in India and ensure a smoother relationship with tax authorities.
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