Business is an activity carried on by risks. The path of business involves uncertainties, loss and interruption. Thus law is definite organized body that can amend certain activities. Any activity carried on in a society has certain rules and regulations for smooth and organized proceedings. Law may be classified into various categories depending on what they pertain to. Every system whether a nation, an institution or a small enterprise needs to be regulated by law. Laws are an important device to conduct business, and in a more abstract sense, simply live. Taxation is a kind law that has to be necessarily followed by the organization, but the policies differ with the type of establishment and revenue.