Bookkeeping for Telangana Businesses: GST, Professional Tax and Local Records

The rules on keeping books come from national law — the Companies Act, the Income-tax Act and GST law. But a business operating in Telangana also has state-level obligations that show up in its books: state GST, Professional Tax, labour law registers and local charges. This guide covers what Telangana businesses should make sure their bookkeeping captures.

GST: Central, State and Integrated Tax

Sales within Telangana attract Central GST and Telangana State GST in equal halves; sales to other states attract Integrated GST. Your books need to separate these correctly, because they're reported and credited differently in your returns. Purchases from suppliers in other states, and input tax credit on them, need the same care.

If your business has premises in more than one state, each state's GSTIN keeps its own books and returns. A Hyderabad head office with a branch in Bengaluru has two sets of GST records, even though the company's books are combined.

Professional Tax

Telangana levies Professional Tax on salaried employees and on businesses and professionals themselves. An employer deducts it from salaries and pays it to the Telangana Commercial Taxes Department, filing periodic returns. Your books should record:

• PT deducted from each employee's salary, as a liability until it's paid.
• The business's own PT enrolment payment, as an expense.
• Payments made, reconciled with the PT returns filed.

Shops and Establishments Records

Establishments registered under the Telangana Shops and Establishments Act must keep registers of employees, wages, attendance and leave. These are labour records rather than accounting books, but they have to agree with payroll entries in your books. Mismatches between the two are a common inspection issue.

Local Charges to Record Correctly

• GHMC or municipal property tax and trade licence fees.
• Stamp duty and registration fees on leases and property documents registered in Telangana.
• Electricity and water charges from the state utilities.

These are routine, but they're often paid personally by founders and never recorded, or recorded without the supporting receipt.

Keeping Books at a Hyderabad Registered Office

A company's books are kept at its registered office unless the board decides otherwise and files Form AOC-5 with ROC Hyderabad within seven days. Many Hyderabad startups register at a co-working space or virtual office but actually keep their accounts in the cloud or at an operating office elsewhere — which should be formalised with AOC-5.

A Checklist for Telangana Businesses

1. Separate CGST, Telangana SGST and IGST correctly in the books.
2. Record Professional Tax deducted, paid and reconciled with returns.
3. Keep payroll entries consistent with Shops and Establishments registers.
4. Record local charges with their receipts.
5. File AOC-5 if books are kept away from the registered office.

Getting Help

Think Filing keeps books for businesses across Telangana, with GST, Professional Tax and payroll reconciled every month.