Annual Compliances For Proprietorship

Income Tax Return of firm
Income Tax Return with Tax Audit
Vat and Service Tax Compliances





Income Tax Return
Vat and Service Tax Compliances
Tax Audit

Need Help From Experts ?


Documents Required for Annual Compliances For Proprietorship

  • 1     Invoices of Purchases and Sales during the year
  • 2     Invoices of expenses incurred during the year
  • 3     Credit Card Statements if Expenses are incurred by Proprietor on behalf on Company
  • 4     Bank Statements from 1 April to 31 March for all bank accounts in the name of firm
  • 5     Copy of VAT or Service Tax returns filed (If Any)
  • 6     Copy of TDS Challans Deposited (If Any)
  • 7     Copy of TDS Returns filed (If Any)
Process Involved 20%

Step 1


Step 2

Service Tax Returns

Step 3

VAT Returns

Step 4

Finalization of Balance Sheet

Step 5

Income Tax Return

Step 6

Tax Audit

Required documents are provided by client

Checking Service Tax Returns and reconciling with bank statements and books of Accounts

Checking VAT returns and reconciling with bank statements and books of Accounts

Balance Sheet and Profit and Loss is finalized based on data provided

Income tax return is filed based on Prepared Balance Sheet

Tax Audit is done for those where turnover exceed 50 lakhs and 2 Crores (Charges Extra)

Statutory Compliance for Proprietorship

Every Individual shall comply with Staututory requirements applicable to him for VAT, Service Tax and Income tax

File Sales Tax (VAT) Returns every Quarter within the due dates 

Important  dates: 

  •  25 July - for April to June 
  •  25 October - for July to September
  •  25 january  - for October to December
  •  25 April  - for January to March

File Service Tax Returns every Half Year ( every 6 Months) -
 Important  dates: 

  •  25 October - for April to September and
  • 25 April  - for October to March

Income Tax Return every year before

 Important  dates: 

  • 31st July - All Cases except audit
  • 30th Sep if your turnover is More Than 1 Crore - Service Turnover More  than 25 Lakhs


  •  Maintain Proper Books of Accounts.
  • Prepare and File Balance Sheet.
  • Comply with Sales Tax and Service Tax Requirements.
  • File Income Tax Returns with Income Tax Department.

Need for Annual Complaince

  • Late filing or non-filing of Sales tax Return before the due date will attract a penalty of Rs. 200 per Day.
  • Late filing or non-filing of Service Tax Return before the due date will attract a penalty of Rs. 200 per Day.


There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital..
It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion..
Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors.


The Proprietor must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India..
No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business.Therefore, there will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same..