TaxTMI 
TaxTMI 
Consequences of Non-Compliance with Legal and Regulatory Framework for Beauty Parlors in India.(Part 2 of 2)
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....onsequences of Non-Compliance with Legal and Regulatory Framework for Beauty Parlors in India.(Part 2 of 2)<br>By: - YAGAY andSUN<br>Other Topics<br>Dated:- 4-6-2025<br>Consequences of Non-Compliance with Legal and Regulatory Framework for Beauty Parlors in India. (Part 2 of 2) Non-adherence to the legal and regulatory requirements governing beauty parlors can lead to serious repercussions, incl....
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....uding monetary penalties, business closure, criminal liability, and reputational harm. The laws mentioned previously are enacted to protect the interests of employees, consumers, and public health. Hence, failure to comply with these provisions attracts enforcement action by various government departments. Below are the key consequences of non-compliance under each applicable area: 1. Under Shops....
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.... and Establishments Act * Penalties: Monetary fines may be imposed for non-registration, non-maintenance of registers, or violation of labor conditions such as working hours or weekly offs. * Business Closure: The establishment may be sealed by the local authorities in case of continued or willful violations. 2. Under GST Act * Late Fees and Interest: Non-registration or delay in filing ret....
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....urns attracts late fees and interest on unpaid taxes. * Penalties: A penalty of Rs. 10,000 or an amount equivalent to the tax evaded (whichever is higher) may be levied for serious violations such as tax evasion or issuing fake invoices. * Prosecution: In cases of fraud, repeated non-compliance, or willful evasion, prosecution and imprisonment provisions under the GST law may apply. 3. Under ....
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....Income Tax Act, 1961 * Penalty for Non-filing: Failure to file income tax returns within the due date can attract a late filing fee under section 234F. * Scrutiny and Audit: Repeated defaults can trigger scrutiny assessments, audits, and questioning by the Income Tax Department. * Prosecution: Concealment of income or willful evasion may result in prosecution and imprisonment under section 2....
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....76C. 4. Non-obtaining Trade License / Municipal Approval * Fines and Closure: Local municipal corporations can impose fines and may forcibly shut down the parlor for operating without a valid trade license. * Health Risks: In cases involving poor sanitation or public complaints, the premises may be sealed, and the owner penalized for endangering public health. 5. Labour Law Violations * Pe....
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....nalties: Non-payment of minimum wages, lack of employment records, or illegal termination can lead to penalties under respective labor laws. * Compensation Claims: Employees may approach the Labour Commissioner or courts to claim compensation for wrongful termination or unpaid dues. * Criminal Liability: In some labor legislations, such as the EPF Act or ESI Act, willful non-compliance can res....
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....ult in imprisonment of the employer. 6. Professional Tax * Interest and Penalty: Delayed payment or non-filing of returns attracts interest and monetary penalties from the state professional tax authorities. * Attachment of Bank Account: Repeated defaults can lead to recovery proceedings including garnishee orders and attachment of the business's bank accounts. 7. Fire and Safety Regulat....
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....ions * Business Suspension: Lack of fire safety clearance can result in suspension or sealing of the premises by fire or municipal authorities. * Criminal Liability: In the event of an accident caused due to negligence, the owner may face criminal proceedings under Indian Penal Code provisions for endangering lives. 8. Consumer Protection Act, 2019 * Compensation Orders: Aggrieved consumers....
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.... can seek compensation for deficiency in service, injury caused due to negligence, or misleading advertisements. * Reputational Damage: Negative judgments from consumer courts can severely damage business credibility and lead to loss of clientele. 9. Intellectual Property Laws * Injunctions and Damages: Unauthorized use of a registered brand name or trademark can lead to injunctions, destruct....
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....ion of infringing materials, and damages payable to the trademark owner. * Legal Costs: The business may also be liable to bear the legal costs of the trademark owner. 10. Drugs and Cosmetics Act, 1940 * Penalties and Seizure: Use or sale of banned or substandard cosmetic products may lead to seizure of stock and penalties. * Prosecution: In severe cases involving injury or use of harmful s....
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....ubstances, prosecution and imprisonment provisions may be invoked. Conclusion In India, beauty parlors must operate within a strict regulatory environment that spans various laws. Non-compliance is not only a regulatory risk but also a business risk, potentially leading to financial loss, legal disputes, and business interruption. Therefore, business owners should ensure full legal compliance, m....
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....aintain proper records, and seek professional advice where necessary to avoid these adverse consequences.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....