Service provided by the tax advisory is directly related to the tax that is paid by the individual or company to the government. This obligatory tax on individual or company (juristic or normal) or property (real, personal, stocked, wages etc.) is different from the tax imposed on the monetary transaction carried out either on individual or company.
Brief on tax
A company pays tax for different purpose; this includes the tax for property, personal tax, income tax or assets tax. There are two types of taxes direct and indirect. Indirect tax is imposed on a single entity. Example a consumer pays tax for retail setting. Direct tax is collected from the company, Example income tax, which is collected from employee of the company.
Since tax is a way of generating revenue for the government, it is necessary to have compliance with tax law and regulation. It plays a key role in corporate as well as non-corporate companies. Tax advisory committee provides specialized professionals that help in getting the much desired result of compiling the tax at low cost.
Work of the tax advisor
The tax advisory help in filing of the income tax and also prepare financial statement of individual or company. The consequences of withholding the tax by the company on various transactions are explained by them. They represent the company in front of the tax authorities for tax payment and assessment.
Tax payer has to take care of these issues in case of direct taxes.
An experienced tax advisory professional can also help out in reconstructing of the business and keep the administrators updated on the tax regulation. They play a key role in communicating with the tax man for the payment so that the business requirements are met.
Other services provided by the tax advisory professional include computing tax liability, take decision on acceptable or unacceptable expenditure, reasonably subtracting the expenditure. The advisor prepares and files income tax and with holds it if required, from authorities to attain a variety of certificates.
It is important that the company has a regular updated tax clearance in order to avoid penalties, since there are constant changes in the tax liabilities. According to the law, a company needs to clear all the taxes within a given time frame to get tax clearance certificate. This certificate helps in creating a good fate of the company in the market and can only be obtained with the help of a professional tax advisor. Hence the job of tax advisory professional becomes more vital.