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GST consultant in delhi india

Executive Summary of GST Transition Provisions

1. ‘Carry forward’ of Input Tax Credit (ITC) as available on appointed day (i.e 1stJuly, 2017)

(I) Every registered person under GST is eligible to claim ITC against CENVAT credit carried forwarded in return pertaining for the period immediately preceeding appointed day(i.e on 30th June 2017) subject to satisfication of certain prescribed conditions:

  • That amount of credit is admissible as ITC under GST also
  • That all Returns for preceeding 6 months were filed under existing laws and alsoadmissible credit is reflected in last returns filed (i.e as on 30th June 2017)

 

(II) Electronic application in FORM GST TRAN‐1 is to be submitted within 90 days (earlier 60 days) from the appointed day. The Commissioner is also empowered to extend period notexceeding 90 days (totaling to 180 (90+90) days) . Thereafter credit should be reflected in electronic credit ledger of the registered person under GST.

 

  1. ‘Credit against Inputs’ as carried in inventory on appointed day

(I) Taxes and duties on inputs of goods as carried in raw material / semi‐finished / finished goods for manufacture of exempted goods under the existing law is also eligible for credit by eligible person subject to satisfaction of certain prescribed conditions :‐

 

    • That eligible person was not liable to be registered under the existing law or
    • That eligible person was engaged in manufacture of exempted goods or provision of exempted services or
    • That eligible person was providing works contract service and was availing the benefit of notification or
    • That eligible person was first stage dealer or second stage dealer or registered importer or depot of manufacturer

 

(II) Conditions to claim credit of inputs against stock as held on appointed day

      • That taxpayer should be registered under GST
      • That amount of credit is admissible as ITC under GST
      • That inputs of goods to be used for making taxable supplies under GST
      • That registered person is in possession of invoices / other prescribed documents evidencing payment of tax or duty
      • That invoices were issued within 12 months prior to appointed day
      • That supplier of services is not eligible for any abatement under Central GST (CGST)
      • That credit is claimed in FORM GST TRAN‐1 shall specify separately the details of stockheld on the appointed day up to 6 tax periods from the appointed date indicating thedetails of supplies effected during each tax period

 

(III) Claim for credit of taxes paid on stock can be made for all aforesaid situations subject toavailability of duty paying documents, in case the duty paying documents are notavailable, deemed credit of 60% of CGST paid if the goods attract a CGST rate of 9% ormore, in other cases, deemed credit is 40% of CGST paid.

 

(IV) In cases when Integrated GST (IGST) is paid on sale of such goods, deemed credit would be available at the rate of 30% of IGST paid, if the IGST rate is 18% or above and 20% ofIGST paid in other cases for claiming deemed credit, the goods should be subjected toexcise duty or additional customs duty (in lieu of excise).

 

(V) Registered person is required to receive credit transfer document from manufacturer where value is more than INR 25,000/‐ and also product bears the brand name ofmanufacturer and goods are serially numbered by inventory management systems (e.g. vehicle chassis or fridge etc) to claim full credit of the excise duty paid.

 

  1. Credit of eligible duties and taxes ‘already’ paid under ‘existing’ act bysupplier against supply of inputs of goods or input of services ‘after’appointed day under GST

(I) Registered person is entitled to claim credit of eligible duties and taxes on inputs of Goods or input of services as received on or after the appointed day where duty or tax ‘already’paid by the supplier under the existing law subject to satisfication of certain conditions:

  • That invoice or any other duty or taxpaying document of same was recorded in books of accounts within a period of 30 days from the appointed day (may be extended further for30 days by Commissioner);
  • That registered person has furnished a statement as prescribed for credit.

 

  1. Material removed for Job Work or other processes

(I) Raw material, semi‐finished or finished goods was sent for job work under ‘existing’ law and also still lying with job worker on appointed day, job worker need not to pay GST onits return to principal where goods are returned within 6 months or extended period of 2months from appointed day.

 

(II) Principal is required to file an application in FORM GST TRAN‐1, specifying the stock or capital goods held by him as principal at place/places of the business or agents/branchseparately agent‐wise and branch‐wise.

 

(III) However if goods are not returned within abovementioned period, the ITC be recovered as arrear of tax under GST and also amount so recovered shall not be admissible as ITC.

 

  1. Duty paid goods ‘returned’ to place of business ‘after’ the appointment day Condition I: Goods be returned ‘within’ 6 months or such extended period from the appointed day

Supplier of the duty paid goods is entitled to get refund of excise duty paid by him underthe ‘existing’ law on removal of goods subject to satisfication of certain conditions.

  • That duty paid on goods were delivered under ‘existing’ law within 6 months prior to theappointed day
  • That goods are returned by non registered person
  • That such goods are identifiable to satisfaction of GST authorities

However if such goods are returned by registered person, then the return of goodsshall be deemed to be a supply.

 

Condition II: Goods are returned ‘after’ 6 months or such extended period from the appointed day

  • That goods are returned by registered person, then he will be liable to GST on suchsupply.
  • That goods are returned by non registered person, then recipient will be liable topay GST under reverse charge mechanism (RCM)

 

  1. Issue of supplementary invoice, debit note or credit note when price under ‘existing’ contract is revised For ‘upward’ revision

(I) Registered Person is permitted to issue supplementary invoice or debit note within 30 days from the date of revision in prices of contract entered into before appointed day.

(II) It’s deemed to be supply in the month in which supplementary invoice / debit note is issued accordingly disclosure in return and payment of tax to be made.

 

For ‘downward’ revision

(I) Registered person is permitted to issue a credit note within 30 days from the date of revision in price of contract entered before appointed day

(II) Accordingly supplier of goods is permitted to reduce tax liability and to reverse, if anyinput credit.

 

  1. Refund Claim

(I) Claim for refund of CENVAT credit, duty, tax, interest or any amount paid under theexisting law is permitted in accordance with provision of existing law.

(II) Refund if allowed is to be paid in cash

(III) Recovery against wrong credit under existing law is to be deal as per the provision of GST.

 

  1. Treatment of long term contract
  • If Contract as entered prior to GST introduction, the goods or services or both as supplied after introduction of GST be liable to tax under the GST.

 

  1. Taxability on supply of goods sent on ‘approval’ basis

(I) GST not payable against goods sent on approval basis, returned to supplier due torejection or non approval by buyer within 6 months or extended period of 2 months.

(II) GST be paid by buyer where goods ‘returned’ after 6 or 8 months as case may be

(III) GST be paid by supplier where not ‘returned’ after 6 or 8 months as case may be

 

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payroll-outsourcing

Payroll Outsourcing – An Ultimate Guide

A payroll is a financial record of salaries paid to an employee as wages, bonus or deduction. It is given for the work done during a particular period of time.

Payroll processing involves tedious routine work. Outsourcing this process allows you to focus on growing your business. Save cost, focus on core tasks and enable growth without manpower and infrastructure restrictions. We offer highly efficient payroll services. Partnering with us reduces costs and increases profits. We offer a convenient and reliable payroll process. Payroll is one of the most important responsibilities of the employer and his company. Our company helps you manage your payroll process in a manner that would maximize salary pay-outs and minimize per employee cost to company.

Importance of Payroll Outsourcing for the Business

Every businessman may not be a good accountant, thus it is not possible for them to give their best in the field of payroll. Whereas, the payroll companies have the most expertise staffs who deals with critical payroll jobs in their daily life. They have the complete expertise in the area of payroll thus provides an error free payroll service and that is also in the most efficient time.

It safeguards the company from the responsibility of paying salary to their employees in the correct time and the correct amount too along with calculating and filling of different taxes. This helps to avoid dissatisfaction among the staffs and doesn’t attract any kind of fines.

 

Some of the reasons for this are:

 

  • Team is headed by group of Chartered Accountants which means all the statutory laws are taken care.
  • Cost savings for the company on outsourcing payroll processing are extremely significant and can go upto 50% at times.
  • Reductions and cost effectiveness can be achieved.
  • Productivity is improved, as service quality provided is excellent and this frees the company from non-income generating tasks.
  • Latest technology and software for payroll processing are used.
  • Indian payroll processing service providers have a very highly specialized and expansive knowledge base in finance and accounting which would be of help to businesses globally.
  • These service providers are fluent in English and extremely competent and efficient.
  • Where India and the USA are concerned, the time difference is also favourable, thus work completion is faster.

 

Selecting the best Payroll Outsourcing Companies is also a critical job as the payroll of a company is directly involved with the profitability and the growth of the business. So, it is always suggested to only trust the professionals for the payroll outsourcing.

 

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Accounting compay in India

Benefits of Outsourcing Accounting and Bookkeeping

Accurate bookkeeping and accounting are not optional for successful businesses, but hiring a full time accounting staff to keep your company’s books can be expensive.

While every business needs the financial data that accountants and bookkeepers prepare in order to fulfill regulatory obligations and make solid business decisions, incurring the cost of a full time staff to prepare that data may not be a very good business decision at all.

Outsourcing this work to a Raleigh CPA firm can mean having the expert financial services that you need anytime while enjoying significant savings.

 

Top Benefits you Get from Outsourcing your Accounting and Bookkeeping

  • Letting you focus on your business priorities by taking care of your non-core
  • accounting functions
  • Making your finance and accounting process streamlined
  • Providing you with regular updates and thorough reports
  • Saving on HR cost
  • Keeping track of costs and budget
  • Providing you advantage of the best accounting software
  • Offering you with customized solutions
  • Benefiting your business with expertise of qualified CAs
  • Giving you the advantage of zero errors, as they are completely liable

 

Outsourcing your company’s Accounting and bookkeeping ensures accurate results and will save you more time and money. To learn more about  Company’s Accounting and bookkeeping services, contact us today.

 

Related : Importance of hire Reliable Bookkeeping Services

Company formation in India

 

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Document required for gst registration

What is GST Registration?

Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as applicable will be required to register as a normal taxable person. This process is of registration is referred as GST registration.

GST is the beggest tax reform in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to obtain GST registration.

 

Documents Required For GST Registration

  For Individual:

  • PAN card
  • ID proof and address proof of Individual
  • Photo (JPG – 100 KB)
  • Bank Details – Copy of canceled cheque or first page of Pass Book  or first page of recent bank statement
  • Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc.  also in case the premises is rented, Rent Agreement will be required.

 

  For One Person Company/ Private Limited Company/ Public Company:

  • Company PAN Card
  • Memorandum of Association (MOA) /Articles of Association (AOA)
  • Registration Certificate/ Incorporation Certificate of the company
  • Bank Details – Copy of canceled cheque or first page of Pass Book  or first page of recent bank statement
  • A copy of the resolution passed by BOD / Managing Committee
  • Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc. also in case the premises is rented, Rent Agreement will be required.
  • Director Related Documents- PAN and ID proof of directors& Photo
  • Proof of Authorized Signatory
  • DIN No of Partners & Digital Signature

 

For Partnership & Limited Liability Partnership (LLP)

  • Partnership / LLP PAN Card (as the case may be)
  • Partnership Deed/ LLP Agreement
  • DIN No of Partners & Digital Signature (in case of LLP)
  • Bank Details – Copy of canceled cheque or first page of Pass Book or first page of recent bank statement
  • Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc.  also in case the premises is rented, Rent Agreement will be required.
  • Partner’s related Documents- PAN and ID proof of designated partners& Photo
  • Proof of Authorized Signatory

 

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Tax adviser in India

GST and its Impact on Indian Economy

Goods and service tax (GST)

The GST is a new concept that simplifies the giant tax structure by supporting and enhancing the economic growth of a country. It is a comprehensive term levy on manufacturing, sale and consumption of goods and service at a national level.

Goods and service tax bill or GST also referred to as the constitution (one hundred and twenty-second Amendment) bill 2014 initiate a value added tax to be implemented on national level. In India, GST will be an indirect tax at all the stages of production to bring about uniformity in the system.

 

Positive impact of GST on India’s GDP

A comprehensive and robust tax structure that will bring the current set of indirect taxes like VAT, sales tax, excise duty etc. under one umbrella and will be instrumental in creating a seamless experience across all states. By bringing the varied tax structures under one net, it is also expected to reduce the cost of transaction for various business entities that had to comply with multiple taxes. We are well aware of the fact that transport and logistics industry is pivotal to the growth of Indian economy as there are lot of products that are delivered from one part of the country to another on a daily basis. So, it is assumed that implementation of a decent GST structure will eliminate other taxes and the export of goods and services will become economical.

 

Negative impacts of GST

There can be no gain without pain and that may be especially true when it comes to GST. As about 160 countries overhauled their indirect tax systems, they confronted numerous challenges. Latecomer India is unlikely to escape some havoc.

  • Service tax rate 15% is presenting charged on the services, so, if GST is introduced at a higher rate which is likely to be seen in near future, the cost of services will rise. In simple words, all the services like telecom,, banking, airlines, etc will become expensive.
  • Increased cost of services means an add to your monthly expenses.
  • You will have to reschedule your budget to bear additional tax
  • Increase in inflation might be seen initially
  • Being a new tax, it will take some time for the people to understand it completely, its actual implications can be seen only when the rate of tax is determined.
  • If the actual benefit is not passed to consumer hand then the seller increase his profit margin, the prices of goods can also see a rising trend.

 

Related Posts:

Goods & Services Tax

Basics that Every One Should Know about GST

How GST Works in India

 

If you have any query regarding this Click Here

Tax adviser in India

GST on digital advertising companies

Assessment of impact on digital advertising companies

Present Scenario

  • For services rendered by a digital advertising company, it charges a service tax @15%
  • For input services availed by a company, it claims an input tax credit (“ITC”)
  • However, a digital advertising company is not eligible to claim ITC on any products used in producing digital content or capital goods purchased by it
  • The company file its service tax return on half yearly basis
  • Two returns annually which can be revised within a period of 90 days from date of filing

Goods & Service Tax (“GST”)

Registration : Registration is mandatorily required as threshold exemption is not available to E-commerce operators*

Rate under GST :GST will be charged @18% on all invoices

Input Tax Credit : ITC can be availed on any supply of goods or services or both which are used or intended to be used in the course or furtherance of business
Read More

 

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GST-ROll-Out-COnfirmation

GST rollout: Retailers working overtime to be prepared, deny impact on sales

Organised retailers do not expect the Goods and Services Tax (GST) to impact their sales despite general fears that it could disrupt businesses, and hope to be fully ready for the uniform tax regime in the next few weeks. “As GST will be rolled out from July 1, we have to be prepared. It will lead to better compliance and an organised way of doing things,”

 

“We are not anticipating any sales disruptions. Nobody has expressed concerns on that…For retailers, benefits will come as and when manufacturer change the prices, which we, in turn, will pass it on to consumers,” he added. July onwards, large retail companies, including Reliance Retail, Future Group, Trent HyperCity and DMart, among others, are looking at aggressive price reductions.

 

The common objective of all retailers is also that margins should be protected, while ensuring that prices remain under check. “We will reduce prices by 2 to 20 per cent on various consumer products,”

 

GST will create a level-playing field for modern trade,” he added, explaining that the biggest challenge is to see that customers are not unhappy. “I believe tax rates should not be so complex as to create variations that adversely affect consumers,” he said.

 

Most retailers are awaiting more clarity on various issues, including input tax credit and e-way bills. Several retail stores have announced big discounts especially in the consumer electronics segment ahead of the GST rollout, in a bid to to clear inventories and to avoid implementation issues.

 

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Goods and Service Tax

Records you should Maintain under GST

GST Laws in India mandate that all registered persons under GST maintain records and accounts in a specified manner. Every law of Direct and Indirect Tax in our country also mandates that information in a prescribed manner has to be captured and preserved for a certain period of time.  In this article, we look at the list of records to be maintained under GST in detail.

Present Tax System:

  1.  Excise Duty : Under Excise, the general records to be maintained are the RG-1 register (Daily stock account of excisable goods), Form IV register (Register of receipt or issue of raw material), invoice book and job work register.
  2.  Service Tax : Under Service Tax, the suggested records include the bill register, receipt register, debit/credit notes register, CENVAT credit register, etc.
  3.  VAT (Value Added Tax) : Under VAT, the records to be maintained include purchase records, sales records, stock records, VAT account containing details of input and output tax, works contract account, etc

 

Documents to be Maintained (GST)

  • Details of production or manufacture of goods.
  • Details of inward and outward supply of goods or services.
  • Stock of goods.
  • Input tax credit availed.
  • Output tax payable and paid.
  • Any other particulars as may be prescribed.

 

If more than one place of business is specified in the registration certificate, accounts relating to each place of business must be kept at the respective places.

Maintaining books and records in electronic form will be ideal and convenient for accurate and timely compliance under GST.

 

Related Posts:

Goods & Services Tax

Basics that Every One Should Know about GST

How GST Works in India

 

If you have any query regarding this Click Here

 

 

 

 

 

save-your-one-person-business-from-extinction-ebook-bookboon-bl

How India & Afghanistan can grow together

India remains an integral part of Afghanistan’s steady progress in institutionalizing peace, pluralism, and prosperity. Ties between Afghanistan and India go beyond the traditionally strong relations at the government level. Since time immemorial, the peoples of Afghanistan and India have interacted with each other through trade and commerce, peacefully coexisting on the basis of their shared cultural values and commonalities.

This history has become the foundation of deep mutual trust. Public opinion polls in Afghanistan confirm this, as well as the sentiment Afghans share about feeling at home whenever they visit India.

 

Growing Asia

  • Fastest growing continent in the world with 60% of world’s
    population (4.2 billion)
  •  Two-third of global growth would come from Asia in next few
    years
  •  In 1990, the top five economies were not among Asia. Today,
    Japan, China and India are top 3 economies in the world
  •  Asia’s share is expected to touch 50% of world’s GDP by 2050

 

Why Afghanistan

  • A population of 34 million and increasing
  •  Five year compound annual growth (CAGR) is 5.4%
  •  GNI per capita is US$630
  •  FDI has increased from US$ 230k in 1970 to US$ 169mn in 2015
  •  Exports and imports taken together equals 53% of GDP
  •  Infusion of billions of dollars in international assistance and investments as well as
    remittances from Afghan expats
  •  World Bank expects to provide US$250-300 mn in grants annually to Afghanistan
    through the World Bank Group
  •  One of the mineral-rich countries of the world
    (the country holds US$ 3 trillion in untapped mineral deposits without Uranium )
  •  Low tax rates in Afghanistan
    (Corporate tax rates are 20% with an overall tax burden of 6.5% only of total domestic income)
  •  Improved agricultural production
  •  Formation of democratic government & improved regulatory environment

 

India- Afghanistan relations

  • Bilateral relations between the two countries have always been strong and
    friendly
  •  India’s financial assistance to Afghanistan was 880 crore in 2015-16
  •  In 2016, India has also extended an aid of over UD$2 billion to Afghanistan
    for one of India’s most expensive projects in Afghanistan (Salma dam)
  •  India-Afghanistan bilateral trade stood at US$643 million in 2015-16
  •  Afghanistan sets a target of US$10 billion for bilateral trade and
    investment with India in five years
  •  In February 2017, Indian visa regime has been further liberalised to make
    it even more convenient for Afghan nationals to visit India

 

Our support to Afghanistan

  • Needs in Afghanistan
    • Skilled manpower
    • Professional services for businesses
  •  Strengths to work with India
    • Convenience of working in the same time zone
    • Connectivity time is less than two hours
    • Similar cultural backgrounds

 

Why India can be a strong partner to Afghanistan

  • World’s third largest economy (Would double in size to US$ 4–5 trillion in a decade)
  •  Fastest growing economy in the world (Current: 7% , by 2018: 7.8%)
  •  By 2020, retail market is expected to grow to US$ 1.1 trillion (growing at a high rate of 20%-25% p.a.)
  •  IT-business process management (BPM) sector in India is estimated to expand at a CAGR of 9.5% to US$ 300 billion by 2020
  •  Indian construction equipment industry’s revenues are estimated to reach US$ 22.7 billion by 2020
  •  Total FDI equity inflows touched US$ 35.84 billion (till December 2016)
  •  Under FDI, all sectors other than sectors which are specifically prohibited or under approval route
  •  Taxes on companies has been reduced to 25% (For companies with annual turnover less than 50 Crores)
  •  Low labor costs (Total labor force of nearly 530 million)
  •  Working age group will be more than 64% by 2021 (15-59 years)
  •  Skill set of India has improved over the years with 40% employable candidates. We have 1.5mn engineering pass outs in India every year

 

Related : Doing Business in India

 

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Tax-Return

Efiling of Income Tax Return

What is a income tax return ?

It is a prescribed form through which the particulars of income earned by a person through various sources(like salary, business, professional fees, interest, capital gains, etc.) in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year, called as income tax return or ITR. It is like your report card in school but instead of  marks you have income and taxes.  It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly. Different forms are prescribed for filing of returns for different Status and Nature of income .

 

What is efiling ?

Efiling or electronic filing is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way where you go the Income Tax Department’s office to physically file your returns. The other way is when you efile through the internet. Over the past few years, efiling has become popular because it is easier, doesn’t require prints of documents and can be done for free.

 

What are advantages of e-Filing?

  • Anywhere, Anytime files, 24 x7 x 365 service.
  • Easy, fast,free and secure
  • Faster processing and quicker refunds.
  • Value added services like viewing Form 26AS,  tracking of refunds,email, SMS alerts regarding status of processing and refunds.
  • And now it is also compulsory for most.

 

Is E-filing of Income tax Return compulsory?

  • E-Filing Returns is  compulsory for:
    Individuals earning over Rs 5 lakh a year. They are required to file their tax returns in the electronic format from AY 2013-14 (FY 2012-13) and subsequent assessment years.
  • Individual/HUF, having total Income of Rupees 10 lakhs. It was made mandatory from AY 2012-2013((FY 2011-12) and subsequent assessment years.
  • Individual/HUF /Firm auditable under section 44B of the IT Act, 1961. It was made mandatory for AY 2012-2013 and subsequent assessment years.
  • All Companies

 

Difference between AY and FY

Financial Year is period between 1st April to 31st March. Assessment Year is the next year in which the income is liable to tax.

For example, if your financial year is from 1 April 2017 to 31 March 2018, then it is known as FY 2017-18. The assessment year for income earned during this period would begin after the financial year ends–that is on 1 April 2018 till 31 March 2019.

 

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