Expense Documentation
Tax savings start with proper documentation. Every business expense that reduces your tax liability should be supported by valid vouchers and invoices.
GST-Eligible Business Expenses
Common expenses that typically qualify for input credit:
- Raw materials and packaging for manufacturing
- Office supplies and equipment
- Professional services (legal, accounting, consulting)
- Rent for business premises
- Telecommunications and utilities
Expenses That Don't Qualify
Personal use, entertainment, and certain specified items are blocked. Ensure you don't claim credit on these to avoid interest and penalties during assessment.
Year-Round Discipline
Maintain expense records as you go. Use accounting software to categorize transactions. At year-end, you'll have clean data for tax filing and reduced audit risk.
Conclusion
Legitimate tax planning relies on documentation and categorization. EquiBillBook helps track expenses and generate reports that support your tax position.