The legal framework of laws, regulations, and filings that a business must adhere to, including tax filings, labor laws, corporate regulations, and industry-specific requirements.
Statutory Compliance in India involves adherence to multiple laws across different domains: Company Law (Companies Act 2013 — ROC filings, board meetings, AGM, financial statements), Tax Compliance (GST returns, TDS/TCS returns, income tax filing, advance tax), Labor Laws (EPF, ESI, minimum wages, shops & establishments act, gratuity, bonus, maternity benefit), Corporate Governance (board composition, audit committee, related-party disclosures for listed companies), and Industry-Specific (RBI regulations for finance, SEBI for securities, FSSAI for food). Non-compliance can result in: monetary penalties, prosecution of directors, loss of business licenses, and reputational damage. An automated compliance calendar and ERP integration are essential for managing the 100+ annual filings that a typical Indian company must make.
Monthly compliance calendar for an Indian company: 7th — TDS/TCS payment. 11th — GSTR-1 filing. 13th — GSTR-1 (QRMP). 15th — PF/ESI deposit. 20th — GSTR-3B filing. 25th — GST payment (QRMP). 30th — Professional tax (varies by state). Plus quarterly/annual: advance tax (15th Jun/Sep/Dec/Mar), annual returns (ROC by Nov 30, ITR by Oct 31, GST annual by Dec 31).
Ensures accurate financial reporting and record-keeping
Helps maintain regulatory and tax compliance
Enables better-informed business decisions
Improves operational efficiency and cash flow management
GST: Late filing ₹50–200/day + 18% interest on tax due. TDS: ₹200/day (max = TDS amount) + 1–1.5% monthly interest. ROC: ₹100/day for late filing. EPF/ESI: 12–25% annual damages for late payment. Companies Act: ₹1–25 lakh penalties per violation, director disqualification for 5 years for repeat offenses.
Use ERP/compliance software with automated reminders, maintain a compliance calendar with owner assignments and deadlines, conduct quarterly compliance audits, designate a compliance officer, use digital filing for all returns, maintain proper documentation, and consider outsourcing to a compliance service provider for smaller businesses.
A periodic document filed with GST authorities declaring sales, purchases, tax collected, tax paid, and claiming input tax credit for a specified period.
A system of collecting income tax at the source of income, where the payer deducts a percentage of tax before making payment to the payee.
A government-managed retirement savings scheme where both the employee and employer contribute a percentage of the employee's basic salary every month.
An independent evaluation conducted within a company to assess and improve the effectiveness of risk management, internal controls, and governance processes.
Let Laabam.One handle the complexity. From invoicing to GST filing, our ERP software makes accounting effortless.