Running a subsidiary company in India means following several compliance rules each month and year. This blog is for business owners, accountants, and managers who want a clear, simple guide. Whether it’s GST, TDS, PF, or ESIC—you’ll find what returns to file, due dates, and needed documents all in one place.
Mandatory Monthly / Quarterly Compliances
| India Compliance | US/Europe Equivalent | Why It’s Filed | Frequency |
|---|---|---|---|
| GST Return | VAT/GST Return (e.g., UK VAT100, EU VAT return) | Reports total sales, purchases, and tax liability to claim input credits and settle liability. | Monthly |
| TDS Return (Form 24Q/26Q/27Q) | Withholding Tax Return | Declares amounts withheld on salaries, professional fees, contractor payments, etc., deposited to govt. | Quarterly |
| Professional Tax (PT) | Local Payroll Tax (e.g., municipal payroll taxes) | Reports payroll-based taxes deducted from employees, remitted to state municipal bodies. | Monthly / Quarterly (state-based) |
Cost of compliances in India
Conditional Compliances (Based on Turnover or Employee Count)
| India Compliance | US/Europe Equivalent | Why It’s Filed | Frequency |
|---|---|---|---|
| ESIC (if employees above 10) (Employees’ State Ins. Cov.) | Social Security / Employer Social Tax | Reports employee and employer contributions to state-managed health insurance and disability schemes. | Monthly |
| EPF (if employees above 20) (Provident Fund) | 401(k) Contributions / Pension Scheme | Reports mandatory retirement savings contributions by employees and employers. | Monthly. 12% or Rs 1800 per month to be contributed by the employer and the employee every month |
| GST Audit (Form GSTR‑9C) | VAT/GST Reconciliation / Annual Audit | Official reconciliation of business accounts vs tax returns to ensure correct tax payment. | Annually (by Dec 31 for FY Mar-Mar) |
Annual Compliances
| India Compliance | US/Europe Equivalent | Why It’s Filed | Frequency |
|---|---|---|---|
| Income Tax Return (ITR‑6) | Corporate Tax Return (e.g., US Form 1120; UK CT600) | Declares annual profit/loss, taxes paid, TDS credits, to calculate net tax liability. | Annually (by Sept 30 for FY Mar) |
| Form MGT‑7 (Annual Return) | Annual Company Return (e.g., UK Confirmation Statement) | Updates shareholders, directors, and share capital info with regulatory registry. | Annually (60 days after AGM) |
| Form AOC‑4 (Financial Statements) | Annual Accounts (e.g., US GAAP/IFRS filings; UK full accounts) | Submits audited financial statements and notes to the company registry. | Annually (30 days after AGM) |
| Secretarial Audit (Form MR‑3) | Corporate Governance Report (e.g., US SOX attestation; UK audit report) | Confirms compliance with formal legal and governance standards. | Annually (within 180 days after FY) |
| Director KYC (DIR‑3 KYC) | Director/Registering Official ID (e.g., Companies House UK; SEC Director ID in US) | Verifies identity and contact info of directors annually. | Annually (by July) |
Summary
Indian filings often serve the same purpose as US/European VAT, payroll, and corporate tax reports—but with local names and slight procedural differences.
Frequency varies: tax and payroll filings are monthly or quarterly; audits and annual reports are due once a year.