Running a business without being on top of recent changes in tax laws, is like walking on a tight rope blindfolded.

As an Entrepreneur if you are not on top of the recent amendments affecting your business, you are losing money big time.

I recently spoke to an SME business owner, owning a toy manufacturing business.

The business is well established and has some very well-known brands in their product basket.

Their distributor network is booming, and they have made sales of roughly 1 Crore and above to each of their distributors during F.Y 20-21.

All looks fantastic right?

Well not when you look under the hood.

On being asked about collecting TCS on these sales, he was surprised to learn about the concept of TCS.

For any sales made during the year 20-21 in excess of Rs. 50 Lakhs to any customer, 0.1% of the sales in excess of Rs. 50 Lakhs needs to be collected as TCS (Tax Collected at Source) and needs to be paid to the credit of the central Govt. on or before the 7th of the next month, failing which an interest is leviable.

Due to the lack of knowledge and consequent failure to put the right processes in place concerning TCS, this popular toy maker has to pay a very large sum as interest and as they had not collected the tax amount from the customer, the base TCS amount too will need to be paid out of their own pocket.

This unexpected drain on their cash flows will cause them to experience a severe cash crunch in the months to come and cause great strain on the business and the management team.

Ignorance of legal changes affecting your business, always proves to be very costly.

Are you aware of all the regulatory changes affecting your business? Do you have the requisite procedures in place to ensure proper compliance?

Always remember, cost of compliance is low, but cost of noncompliance is huge.

To make sure, you do not suffer the way this entrepreneur did, I am giving 30 minutes of my time to help you understand, how to avoid critical non-compliances.

This is only for my readers who care enough to take action.

You can schedule your slot on my calendar at https://calendly.com/insciteadvisory/qquickcall Hope this article adds value to you.