The modern capitalist society has transformed with the proliferation of internet technology. It is much easier to start a business online today than it was a few decades ago. This has given the much-needed push for entrepreneurship.
The internet technology has been a game-changer, it transformed the way people buy and sell goods. In addition to this, it also revolutionized the payment mechanism.
Taxation is one of the most important aspects of any business. Stringent taxation rules and policies have been a deterrent for many aspiring entrepreneurs who want to start their businesses.
They fail to do so due to the overwhelming and cumbersome taxation formalities involved in the process of registering and running a business. The online tax payment systems have ruled out this rigidness and have leveraged technology to ease the process.
A country with easy taxation system makes for a good business destination. India is on the road to becoming one such nation. An online tax payment system provides an easy way to register and file for taxes.
This helps both the government and the businesses. The government can benefit from increased tax revenues due to the high level of compliance, whereas the businesses can formalize and obtain tax benefits.
Advantages of Online Tax Payment
Some of the major benefits of online tax payment for businesses include the following.
Ease of filing and payment
Internet banking has redefined how people pay taxes to the government. Banks have integrated online tax payment facilities that allow you to pay multiple taxes, including corporate taxes, wealth tax, income tax, tax deducted at source, etc. In addition to being easy, it is also a quick way to pay tax to the government. You can file and pay taxes from anywhere just using your internet connection. Earlier tax payment required standing in long queues for hours.
Service availability on a 24*7 basis
The digital world has new timelines for things, and the service hours are not limited here. The 24*7 service availability of online tax payment systems makes it a lucrative option. No matter what time of the day it is, just log on to the online portal and pay your tax to the government.
No physical challan submission needed
The presence of online tax payment system has eliminated the need to submit a challan physically. You can view your challan online and can download the PDF file. The e-challan is a secure way to process your challan. The copy and receipt of the challan can be printed and saved for future reference.
Immediate payment acknowledgement
One of the most important benefits of online tax payment is that the payment acknowledgement is immediate. Due to the presence of a robust IT system, the record is updated instantly. The online tax payment portals also provide you with the option to track the status of your payment.
Record maintenance & accessibility
It’s harder for businesses to keep the physical record of every document and tracing the documents can be even harder. The online tax return filing makes it easier to record all historical tax data online, and it can be accessed anytime for references. Maintaining proper documentation is necessary for any business, and this helps to a great extent, with the maintenance and accessibility of tax records.
Online tax guide
Filing taxes online is the least complicated thing that you’ll be doing. First time entrepreneurs have a lot to do and saving expenses on third party services requires you to know how to do stuff easily. The online guide will help you with every step of your tax filing and eliminate any chances of error.
When you are running a business, you have a lot on your plate. You have to optimize your work and increase your productivity. Filing and paying taxes online helps you save a lot of time that would’ve otherwise been wasted if you would have opted for the alternative manual filing.
GST and Online Taxation
The introduction of Goods and Services Tax by the government of India has improved the ease of doing business and the global ranking of India in the list. GST has three important nodes that combine the whole taxation regime – it includes the CGST, the SGST and the Integrated GST.
A normal taxpayer under GST has to file two monthly returns and one annual return. The monthly return includes GSTR-1 & GSTR-3B, the annual return includes GSTR-9. You can easily obtain information on subjects like how to file GSTR 9 online. It is also important to be aware of the GST return filing dates to avoid any penalties.
The presence of a solid IT system in place for online registration, filing and payment of taxes makes it easier for businesses to comply with the tax norms and boost government revenues.
GST has numerous benefits for business in India – from Input Tax Credit to online taxation portals, it has a lot to offer. Online payment of taxes is one of the key features of the GST scheme. Let’s look into some key features of GST that make it a good tax reform in the online era.
Easy registration and filing procedure
With the advent of GST, it has been easier than ever to register as a business in India and obtain the registration number. GST registration usually takes 2-6 days to complete after providing all the necessary documents. Documents can be easily submitted online and don’t require any hard copies as proof. GST has uniform formats and lesser tax filling, removing all the complications for businesses.
The online GST portal ensures a clean and legitimate tax collection process for businesses. It removes any chances of error and malpractices associated with the previous taxation systems in India. This helps to bring more transparency into how tax is collected and transferred to the government.
Simplified ecommerce operations
Before the advent of GST, ecommerce businesses were subject to multiple tax laws. The supply of goods across the border using road transportation required producing necessary documents like VAT number, registration number, etc. Failure to produce the necessary documents had a major penalty and could also lead to confiscation of goods by authorities.