Misc. taxes on a propritorship

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Anurag (Querist)
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17 March 2012 Hi,
I' m starting my business where i sell different general store product including home delivery system.

so i want know the payable taxes on my business like sales tax, VAT and others.
Actually i don't know anything about Tax System. I belong from UP.
Thnx

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 March 2012 The following taxes are applicable
1) Professional Tax,
2) Municipal Tax,
3) Sales Tax
4) Central Sales Tax
5) Service Tax
6) Income Tax

Guest

Guest (Expert)

19 March 2012 It is better to give your file to consultant who shall take care of the statutory complainces.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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03 August 2024 When starting a proprietorship in Uttar Pradesh (UP) for a general store with home delivery services, there are several tax obligations and compliance requirements you need to be aware of. Here’s a breakdown of the major taxes and compliance issues:

### 1. **Goods and Services Tax (GST)**
- **GST Registration:** If your annual turnover exceeds ₹40 lakhs (or ₹20 lakhs for special category states), you are required to register for GST. For businesses with turnover below these limits, voluntary registration is also an option.
- **GST Rates:** GST rates vary depending on the type of goods sold. Most general store items fall under GST rates of 0%, 5%, 12%, 18%, or 28%. You’ll need to check the specific GST rate for each product category.
- **Filing GST Returns:** After registration, you need to file GST returns monthly (GSTR-1 and GSTR-3B) and an annual return (GSTR-9).

### 2. **Income Tax**
- **Income Tax Returns (ITR):** As a proprietor, your business income is considered part of your personal income. You must file an income tax return under ITR-3 or ITR-4 (presumptive taxation scheme) if applicable.
- **Advance Tax:** If your total tax liability exceeds ₹10,000 in a financial year, you are required to pay advance tax in quarterly installments.

### 3. **Professional Tax**
- **Professional Tax Registration:** Professional tax is applicable in certain states, but UP does not levy professional tax for businesses. It’s essential to check with local authorities or a tax consultant for any updates or changes.

### 4. **Other Taxes**
- **Property Tax:** If you own the property from which you operate your business, you will be liable to pay property tax to the local municipal authority.
- **Municipal Taxes:** Depending on your business location and municipal regulations, there might be additional local taxes or levies.

### 5. **Compliance Requirements**
- **Keeping Records:** Maintain proper records of all business transactions, sales, purchases, and GST invoices. This will help in filing returns and managing compliance efficiently.
- **Invoices and Receipts:** Issue GST-compliant invoices for all sales. Keep track of receipts and expenses to claim input tax credits under GST.

### **Steps to Get Started**

1. **Obtain GST Registration:** Visit the GST portal [GST Portal](https://www.gst.gov.in/) to apply for registration.
2. **File Income Tax Returns:** Ensure timely filing of your annual income tax returns. You can use the [Income Tax e-Filing Portal](https://incometaxindiaefiling.gov.in/).
3. **Maintain Proper Accounting Records:** Use accounting software or manual ledgers to keep track of all financial transactions and taxes.

### **Consult a Tax Professional**

Since tax compliance can be complex and varies based on specific circumstances, it’s advisable to consult a tax professional or accountant who can provide personalized guidance based on your business activities and local regulations.

This overview should help you understand the basic tax obligations for your proprietorship in UP. If you need more specific details or assistance, feel free to ask!