Tax & Compliance Deadlines for Foreign-Owned Companies in India : A Story of Compliance:
Meet ABC Global Pvt. Ltd., a foreign-owned company that decided to expand its operations into India. The company was incorporated on April 1, 2024, and now needs to navigate India's tax and compliance landscape. Here's how ABC Global tackled each compliance step and met its tax deadlines in a timely and efficient manner.
April 2024: The Beginning
Incorporation: ABC Global officially registered with the Ministry of Corporate Affairs (MCA) and received its Certificate of Incorporation.
Registrations Completed:
PAN: A Permanent Account Number was obtained for tax filings.
TAN: A Tax Deduction and Collection Account Number was secured for deducting and depositing TDS.
GST Registration: Since ABC Global planned to sell services in India, it registered for GST.
May 2024: First GST Filing
GST Compliance:
By May 11, ABC Global filed its first GSTR-1 to report sales made in April.
By May 20, it filed GSTR-3B to report its sales, purchases, and tax payments.
ABC's team realized that timely GST filings would now be a recurring monthly task.
June 2024: Advance Tax Begins
Advance Tax Payment:
On June 15, ABC made its first Advance Tax Payment, amounting to 15% of its estimated annual tax liability.
This installment marked the first step toward meeting its income tax obligations.
July 2024: TDS Compliance
TDS Deduction & Filing:
By now, ABC Global had started paying its Indian employees and contractors.
The company deducted Tax at Source (TDS) on these payments and deposited it by the 7th of each month.
On July 31, ABC filed its Q1 TDS return, reporting deductions for April–June.
ABC Global's finance team ensured that TDS compliance was always on track to avoid penalties.
September–October 2024: Audit and Compliance
Tax Audit:
Since ABC’s turnover exceeded ₹1 crore, it needed to undergo a Tax Audit.
By October 31, the company filed its Tax Audit Report (Form 3CD) with the help of its auditors.
Transfer Pricing Compliance:
ABC Global engaged in international transactions with its parent company.
By October 31, it submitted Form 3CEB, certified by a chartered accountant, detailing its transfer pricing policies.
October–November 2024: Corporate Tax Filing
ITR Filing:
By October 31, ABC Global filed its Corporate Income Tax Return (ITR-6).
Since it had international transactions, it submitted additional documentation for transfer pricing compliance.
ABC's timely filing ensured it avoided interest and penalties for late returns.
November–December 2024: Annual Compliance with MCA
Filing Financial Statements:
ABC held its Annual General Meeting (AGM) in October.
By November 30, the company filed Form AOC-4, submitting its financial statements with the MCA.
Annual Return Filing:
By December 30, ABC filed Form MGT-7, its annual return with the MCA.
These filings helped ABC stay compliant with corporate regulations.
December 2024 – March 2025: Ongoing Compliance
Advance Tax Payments:
15th September: Paid 45% of its estimated tax liability.
15th December: Paid 75% of its estimated tax liability.
15th March: Settled 100% of its estimated tax liability for the year.
Quarterly TDS Returns:
October 31: Filed TDS returns for Q2 (July–September).
January 31, 2025: Filed TDS returns for Q3 (October–December).
May 31, 2025: Filed TDS returns for Q4 (January–March).
Monthly GST Returns:
Filed GSTR-1 and GSTR-3B by the 11th and 20th of every month.
A Smooth First Year
ABC Global successfully navigated India's tax and compliance requirements in its first year of operations by:
Keeping track of all due dates.
Working with tax consultants to ensure timely filings.
Using software to automate reminders for recurring tasks.
Key Takeaways for Your Company
First Step: Start with PAN, TAN, and GST registrations after incorporation.
Stay Organized: Create a calendar of recurring due dates for GST, TDS, and advance tax.
Engage Experts: Work with professionals to handle tax audits, transfer pricing, and corporate filings.
By following ABC Global's journey, you can ensure your foreign-owned company stays compliant with India's tax laws and avoids penalties. Need help managing these deadlines?
TaxMarket.in offers end-to-end solutions to simplify your tax compliance in India.
Contact us today to learn more!
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