'Understanding and integrating into India’s regulatory framework is not just about avoiding penalties; it’s about building a sustainable and scalable business presence in one of the world’s most dynamic markets', Rahul Shinghal, CEO, Tazapay.
Direct and indirect taxes. Proper handling of taxes, including GST and other relevant taxes is essential. Merchants must ensure they are collecting and remitting taxes correctly to avoid any legal and financial penalties.
Adhering to the equalisation levy. The 2% equalisation levy is designed to ensure that foreign digital entities pay their fair share of taxes. Comprehending and complying with this levy is vital to avoid double taxation and maintain smooth operations.
Robust documentation and reporting. Handling key documents and maintaining No Permanent Establishment (PE) declarations and Tax Residency Certificates (TRCs) is crucial. These documents are not just regulatory formalities but the backbone of establishing a business’s compliance stance in India.
Continuous compliance monitoring. The regulatory environment in India is evolving, and businesses need to stay updated with the latest changes. Continuous monitoring and adapting to new regulations are necessary to ensure uninterrupted operations.
The payments industry had to evolve rapidly to address the increasing complexities of compliance in India, particularly as the digital economy grows. At Tazapay, we have approached these challenges by embedding compliance deeply into our payment solutions. This ensures that merchants can focus on their core business while we handle the complexities of taxes, the equalisation levy, and necessary documentation.
Merchants looking to expand into India should the following practices:
Integrate compliance from the start. Don’t treat compliance as an afterthought but rather integrate it into your business processes from the beginning to ensure smooth operations.
Leverage technology. Use technology solutions that automate compliance tasks, such as tax calculations, document management, and filings. This reduces errors and frees up resources.
Stay informed. The regulatory landscape in India changes frequently, so staying updated on the latest developments and adjusting your compliance processes accordingly is a must.
Work with experienced partners. Collaborate with partners who understand the intricacies of India’s regulatory environment and can provide expert guidance and support.
Educate your team. Ensure that your team understands the compliance requirements and the importance of adhering to them. Regular training and updates can help maintain compliance standards.
Embedding tax collection at checkout. We integrate applicable taxes directly into the checkout process. This ensures that tax collection is handled seamlessly and accurately, reducing the burden on merchants, and enhancing the customer experience.
Collaboration with partners for tax and levy filings. Understanding the complexities of India’s regulatory environment, we work closely with expert partners to assist with the filing of taxes and the equalisation levy. This partnership approach ensures that filings are timely, accurate, and in full compliance with local laws.
Staying updated with regulatory changes. The regulatory landscape in India can be ambiguous and subject to rapid changes. By collaborating with consultants and experts, we keep our systems and processes up to date with the latest regulatory requirements. This proactive stance helps us navigate the grey areas effectively and ensure our clients are always compliant.
By embedding rigorous compliance measures into every aspect of our service — from tax collection at checkout to working with experts for up-to-date regulatory guidance — we protect businesses from direct and indirect losses and safeguard their reputation. This proactive approach allows businesses to expand confidently, secure in the knowledge that their operational backend is robust and compliant. We see compliance as the foundation of sustainable business growth, enabling our clients to leverage India’s vast market potential effectively and safely.
For more information, download Tazapay's latest guide to the gateway of India's ecommerce landscape.
Tazapay is revolutionizing cross-border commerce as the preferred 'collect, hold, and pay' payment provider, especially for businesses eyeing growth in emerging markets. With superior card acceptance and a wide array of local payment options, Tazapay guarantees high authorisation rates, enabling merchants to expand their reach and grow their customer base effectively. Our platform simplifies international transactions, making global expansion straightforward and efficient in over 173 countries.
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