Setting up a business in India requires a lot of patience to overcome the various administrative hurdles. Whether it is a joint venture or a liaison office, you need to have a proper idea of the subsequent compliance issue. Most important of them are the issues related to tax compliance.
In India, there is a well-developed tax structure that clearly demarcates the authority between the Central, State and local bodies. The taxes in India are broadly in the nature of Direct Tax, Indirect tax and Levies on Transactions. For their business transactions, Indian companies are subjected to payment of taxes and stamp duties. The non-payment of taxes usually invites a penalty and in severe cases, the impounding of documents.
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