Why business need to file statutory returns and waste money - Business & Economy - Entrepreneurship - TIK Share

Why business need to file statutory returns and waste money

Rahul Rai


I had a discussion with one entrepreneur, regarding why should the businessmans file the various returns which are of no use to their business.

Returns he mentioned were like XBRL with MCA etc.

His concern was that these data is required to government and not to us. Why this burden is passed to us.


Any one with a valid view here?

CA Pulkit Sharma


Question raised by your freind looks valid from his point.

But there is another side of it.

Ask these question and you shall get the answer!

1. What will government do with these data?

2. Will this data be useful to public at large?

3. Is data submitted to government will benefit the users in any manner?





Why should Government Install Signal Lights

Its Public Problem they decide Mutually.



Sudeep Prakash


Hi my dear frnd, 

I basic reason of the filing with various authorities is due to :

1. Comparability of the data - {Financial( for Investors & lenders) & Non Financial (others)

2. Coz of XBRL we can freely exchange the financial info

3. To create global standard for exchanging financial data

4. To compare the turnover - filied with others Tax authorities

5. For Sebi purpose and all

6. To avoid the Scams 

Because of that only Govt's  are making these filings.

Hope u get the idea now ,



Rahul Rai



all these advantages are to government. What are the advantages to that businessman.

And ROC also charges fees for all these returns. One we are filing all the data to help government and on other hand they are charging also.

Agreed it helps public at large, but why ROC should charge statutory fees for all these.


CA Pulkit Sharma


Government functions for public at large. If we apply the same logic, why subsidy on petrol and diesel is given to all if its meant only for Farmers and transporters. Well some of the governemnts expenses have to be bared by all.