Welcome to AJSH & Co.

Financial/Estate Planning
1399198781

AJSH affiliating ACCI Business Conference on Afghanistan in Australia

AJSH & Co LLP affiliating the Australian Afghan Business Council’s 3rd Business Conference on Afghanistan in Australia 2017 co-organized by Afghan Chamber of Commerce & Industries (ACCI) on 26-27 April 2017.

 

Mr. Ankit Jain, the managing partner of AJSH & Co LLP will be sharing his thoughts on how Indo-Afghan can grow together. He will be presenting the facts about how India can support Afghanistan in growing their businesses by analyzing each other’s strengths and weaknesses.

 

The conference will be attended by official delegates and business leaders from Afghanistan and Australia includingMinister of Finance, Australia, Minister of Finance, Afghanistan, Ambassador of Afghanistan to Australia, Ambassador of Australia to Afghanistan, CEO, ACCI, President Afghan Dubai Business Council, CEO Afghan Logistics and Tours, Chairman Afghanistan Affairs (AABC), people from President’s office and economic advisers.

 

For more details, please visit: http://www.australianafghanbc.com.au/

Goods-And-Service-Tax-GST

Basics That Everyone Should Know About GST

With the passage of the GST bill in both the houses of Parliament, its implementation from 1 July 2017 is nearly certain.

India currently has a dual system of taxation of goods and services, which is quite different from dual GST. Taxes on goods are described as “VAT” at both Central and State level. It has adopted value added tax principle with input tax credit mechanism for taxation of goods and services, respectively, with limited cross-levy set-off.

 

GST (Goods and Service Tax)

GST means Goods and Service Tax. It is an indirect tax levied on sale of goods and services. The reformists believe that GST is one of the most awaited law which upon introduced will boost the economic growth in the country. This law if passed by the parliament may come into force from April 2016. As everyone is talking about it now, let’s get into the basics of the proposed law in this article.

 

Does GST apply to you?

Being an indirect tax, it is applicable to businesses, professionals, freelancers and service providers. It does not apply to salaried individuals.

 

Is it easy to implement in India?

Not really. Today states have autonomy in collecting state taxes. They have the feeling of losing their rights! They want liquor, fuel to be out of GST tax system. They are also worried about Central government sharing GST revenue with the states. If India becomes one common market, then the states will have to share their powers of taxing with the union government. (Which means states can’t increase the taxes as and when, as much as they want)

 

What is a “casual taxable person?”

A person who occasionally supplies goods and/or services in a territory where GST is applicable but does not have a fixed place of business in the said state is treated as a casual taxable person. For example, a person who has a place of business in Bangalore gives consulting services in Pune (where he has no place of business), then he would be treated as a casual taxable person in Pune.

 

What are the differences between the UPA’s GST and the NDA’s GST?
Below are the primary differences:

  • Petroleum sector has been kept out of the ambit of GST
  • Liquor for human consumption is exempt however tobacco and tobacco products will fall under GST.
  • There is a 1% tax on top of the GST for inter-state movement of goods and services.

 

What will be the short-term impact of GST?

The GST will fuel inflation for the short term. The GST rate starts at 5% and 18% taxation services such as restaurants, movies etc. are bound to increase prices. Another problem with the GST that many pundits feel is not including liquor and petroleum under GST’s ambit. These are major revenue sources for the government and experts feel this is being done due to a few crony capitalists who need some time to funnel away their black money as the GST promises to widen the tax paying population.

Related : How GST Works in India

20

AJSH hosted Adam Global Asia Pacific Regional Conference

1

AJSH & Co LLP hosted the Adam Global Asia Pacific Regional Conference in New Delhi, India from March 24-25, 2017. Each year, ADAM Global Regional member firms assemble in a different global metropolis for 2 days to share ideas, identify areas of collaboration and build relationships with fellow member firms.

Adam Global is multidisciplinary network of independent Legal, Accounting and Consulting firms. It is the fastest growing network with more than 130 member firms across the Americas, Europe, Asia Pacific, Africa and the Middle East.

Networking is all about planting relationships. At the recent Adam Global Regional Conference, Mr. Ankit Jain, the managing partner of AJSH & Co LLP took a step forward in leveraging the knowledge to multiply gains and losses. The conference was organized in order to provide with numerous opportunities to build new relationships and strengthen existing ones. The conference started with introduction on “Doing business in India” presented by Mr. Ankit Jain, being the Asia Pacific’s president of Adam Global. He shared the facts that India‘s economy is the emerging one that might prove as the “game changer”. Thereafter, Mr. Sumant Batra shared his thoughts on India Law and Insolvency Code. Later, Alternate Investment Fund, NRI Investments in India, Realty were shared in the presentations by the other members.

The member firms are benefited from such alliances that always provide cross marketing strategies, promotes greater collaboration, cross business opportunities.


25 27 30

25 27 4

 

 

 

 

 

 

 

Show more…

make-in-india-

Doing Business in India

Doing business in India offers enormous opportunities for Foreign companies. However, India is a large and complex market. It should not be seen as one market, but a series of interconnected regional markets where the legislative and investment climate may change from one state to another.

It is wiser to be in India now…

  • Fastest growing economy in the world
    (Current: 7% , by 2018: 7.8%)
  • World’s third largest economy
    (Would double in size to US$ 4–5 trillion in a decade)
  • Taxes on companies has been reduced to 25%
    (For companies with annual turnover less than 50 Crores)
  • World’s second-largest telecommunication market
    (1058.86 million subscribers)
  • By 2020, retail market is expected to grow to US$ 1.1 trillion
    (growing at a high rate of 20%-25% p.a.)
  • World’s sixth largest pharmaceutical market by 2020
  • By 2050, India will have added 300 million people
  • Working age group will be more than 64% by 2021
    (15-59 years)
  • Growing urban markets
    (23.1 Million people shifting from rural to urban areas in two decades)
  • Low labour costs
    (Total labour force of nearly 530 million)
  • Purchasing power parity, India’s economy is third largest in the world
    (Current-$ 8.7 trillion, by 2025-$ 20 trillion )

 

Foreign Direct Investment into India

 

Automatic Route

  • All sectors other than sectors which are specifically prohibited or under approval route
  • Should comply with sector based investment and other conditions (i.e. sectoral caps)

 

Approval Route

 

100% FDI through Government approval route

  • Extraction of titanium
  • Publishing of scientific & technical magazines/specialty journals/ facsimile
  • Edition of foreign newspapers
  • Satellites (establishment & operation)
  • Pharmaceuticals (Brownfield)

100% FDI: Government approval required beyond 49%

  • Telecom Services
  • Broadcasting Carriage Services
  • Single Brand product retail trading

100% FDI: Government approval required beyond 74%

  • Existing projects of Airport

49% FDI : No Government approval required

  • Infrastructure Company in the Securities Market
  • Insurance
  • Pension Sector
  • Power Exchanges
  • Defense
  • Air Transport Services (Scheduled): 100% for NRI

49% FDI through Government approval route

  •  Broadcasting Content Services (except Up-linking & Down-linking
    of Non-‘News & Current Affairs’ TV Channels)
  •  Private Security Agencies

FDI limits less than 100%

  •  Banking (Private Sector): 74% FDI is allowed. However,
    Government approval is required beyond 49%
  •  Banking (Public Sector): 20% FDI is allowed with Government
    approval
  •  Multi Brand product retail trading: 51% FDI is allowed with
    Government approval
  •  Print Media: 26% FDI is allowed with Government approval

 

 

ssdfszgfvb c

Reasons to set up a limited company

Setting up a limited company will mean more administration and more paperwork than if you are a sole trader but there are many advantages to being a limited company, not least eliminating and personal financial liability.

When a sole trading business fails then the owner is personally responsible for any debt, which can have a negative effect on your credit rating and ability to obtain personal loans in the future. You could risk becoming personally bankrupt if the debts are too high for your to pay off.

If you set your business up as a limited company you are protected from this risk.

 

What are the Benefits :

Whilst running a limited company does have its fair share of responsibility, and the administrative responsibilities are certainly greater than other ways of working, there are many advantages too.

    • Limited liability – In simple terms, if you run a Limited Company you are protected should things go wrong. Assuming all rules have been followed, as a director you will not be personally liable for any financial losses made by the company.

 

    • Separate entity – A Limited Company is a legal entity in its own right. This means that everything from the company bank account, to the ownership of assets relates to the business. They are totally separate from the interest of the directors and shareholders.

 

    • Tax – As a director and shareholder of a limited company you could elect to take the majority of your income in the form of dividends, which enables you to manage your own tax liability and potentially save on National Insurance costs.

 

    • Perception – If you plan to do business with larger companies, it can help if you are working via a Limited Company as it gives off a more professional image. In some industries, it may even be a mandatory requirement as they will not deal with sole traders or partnerships.

 

    • Protection – As well as the limited liability protection mentioned above, once you have successfully registered your company, your company name is protected by law. Companies House has very stringent rules for the naming of companies so no one else can use the same name as you, or anything deemed too similar.

 

    • Ownership and succession – As the sole shareholder in your business, you own the business. However, a Limited Company can easily transfer ownership of shares, or existing shareholders can sell a stake in the company to other parties at any time. If for example a shareholder wishes to retire, or bring a new director on board, it is far easier to transfer ownership, or part ownership, of a Limited Company than it is with a less formal business structure.

 

    • Take home pay – It’s safe to say that this is the area where you can really reap the rewards of running your own Limited Company. The only person you need to pay as a Limited Company is yourself – combined with the tax efficiencies on offer, this means you can keep anything from 81 to 86 percent.

 

Accounts

Accounts must be prepared each year but most small companies are not required to have them audited so the process is relatively simple, especially now that the process can be done online.

 

Portrait of business girl attending meeting

Audits Under PCAOB Standards

A yearly audit is a key safeguard for your money and a planning tool for the year ahead. Think of it as a “year in review” for your finances.

The primary benefit of an annual audit under PCAOB standards  is the confidence it gives you and your members that the PTO’s financial house is in order. Basically, the audit verifies the numbers, ensures accuracy, and assesses procedures. A comprehensive audit also identifies internal controls that should be implemented to improve the integrity of your financial systems. Furthermore, the audit gives closure to the treasurer and sets a starting point for the new year’s activity. An audit is also the primary tool for uncovering financial mismanagement. Hopefully you won’t need to conduct an audit for this reason, but an annual audit can uncover problems before they become significantly more serious. Your PTO might also choose to include in your audit a review of how closely your group’s income and expenditures matched the year’s budget. This type of review can be a strong planning tool.

 

The audit is not within the jurisdiction of the PCAOB. This seems like a strange request.  Perhaps the client is a clearing agency or futures commission merchant registered with the Commodity Futures Trading Commission, which requires that entities registered with it have an audit performed in accordance with PCAOB standards. Maybe the client has entered into a contractual agreement that requires an audit conducted under PCAOB standards. Or maybe, for whatever reason, the client just wants an audit conducted under PCAOB standards.

 

The PCAOB determines which audits are within its jurisdiction, including audits of the financial statements of issuers and nonissuer brokers and dealers registered with the SEC. A regulator (other than the PCAOB) requiring that the audit be conducted in accordance with PCAOB standards does not make the audit fall within the jurisdiction of the PCAOB. Therefore, even though the regulator— for example, the CFTC— requires an audit to be conducted in accordance with PCAOB standards, that audit is required to also be conducted in accordance with GAAS.

 

The Auditor’s Report

The report from the auditor will mark the completion of the review. If you are using volunteers, you should clearly itemize what you expect back, so your auditors know when they have completed their job.

Ensure that your auditor has returned the files you provided, and file the original report in the PTOs permanent archives. At the first meeting of the new school year, you should present the auditors report and move that it be adopted. According to Robert’s Rules of Order, once the annual report of the auditor is adopted, it is no longer necessary to move to adopt each month’s treasurer’s report. The reports are presented and then simply filed for next year’s audit.

Related Things you should Know before Registering a Company in India

slider3

What is Subsidiary Company in India

Subsidiary company is any company whose interests are held and controlled or held by another company. Paid up equity share capital and preference share capital of the subsidiary company can be used to determine the holding company, subsidiary company relationship between two companies.

 

What is a Subsidiary Company?

There’s often a lot of confusion regarding the position of the subsidiary company and what it does. A subsidiary company is a company that is either owned or owned in part by another company. The company that owns the subsidiary is known as a parent company or a holding company. It should be noted that a holding company does slightly differ from a parent company, though.

 

What is WOS (Wholly Owned Subsidiary)

When one company is 100% owned by another company, it is called Wholly Owned Subsidiary of the company who had made 100% investment in it.

 

How To Set Up a Subsidiary

To setup one of these companies, you only need a sole director. The requirement for a company secretary was waived some years ago. The only restriction is that the sole director cannot then act as the company secretary. When you register as a sole director, you will enter both your residential address and a service address. Only the service address will appear in the public records.

The key here is that in the various documentation you submit regarding shareholders you will have both an individual director and another company as a shareholder. You are prohibited from having an entire company owned by another company.

Once you submit the documents, you will have a decision within 24 hours from Companies House.

 

Conclusion

Opening up a subsidiary isn’t a decision that you should take lightly. It isn’t always necessary and it may be better to simply open a different company from scratch. You have to make this decision by yourself. And it may be better to employ a professional agent to help with the opening of your subsidiary.

 

Know more about how to register company in India

gst-700x300-1

How GST Works in India

GST is a type of value added tax and a proposed comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian central and state governments. Further, the Goods and Service Tax (GST) is considered to be one of the biggest reforms in India’s indirect tax structure.

 

THE NEED FOR GST

Suppose Mr. A sells goods to Mr. B and charges sales tax; then Mr. B re-sells those goods to Mr. C after charging sales tax. While Mr. B was computing his sales tax liability, he also included the sales tax paid on previous purchase, which is how it becomes a tax on tax.

 

main-qimg-611f4c6557ebf87aa64e15abe4fb74bc

This was the case with the sales tax few years ago. At that time, VAT was introduced whereby every next stage person gets credit of the tax paid at earlier stage. This means that when Mr. B pays tax of Rs. 11, he deducts Rs. 10 paid earlier.

Similar concept came in Excise Duty and Service Tax also, which is called Cenvat credit scheme. To a huge extent, the problem of cascading effect of taxes is resolved by these measures.However, there are still problems with the system that have not been solved till date.

 

GST will solve this problem. Let us see how.

 

  • Sale in one state, resale in the same state

In the example illustrated below, goods are moving from Mumbai to Pune. Since it is a sale within a state, CGST and SGST will be levied. The collection goes to the Central Government and the State Government as pointed out in the diagram. Then the goods are resold from Pune to Nagpur. This is again a sale within a state, so CGST and SGST will be levied. Sale price is increased so tax liability will also increase. In the case of resale, the credit of input CGST and input SGST (Rs. 8) is claimed as shown; and the remaining taxes go to the respective governments.

     

  •  Sale in one state, resale in another state

In this case, goods are moving from Indore to Bhopal. Since it is a sale within a state, CGST and SGST will be levied. The collection goes to the Central Government and the State Government as pointed out in the diagram. Later the goods are resold from Bhopal to Lucknow (outside the state). Therefore, IGST will be levied. Whole IGST goes to the central government.

 

  • Sale outside the state, resale in that state

In this case, goods are moving from Delhi to Jaipur. Since it is an interstate sale, IGST will be levied. The collection goes to the Central Government. Later the goods are resold from Jaipur to Jodhpur (within the state). Therefore, CGST and SGST will be levied.

google_2015_logo_high_resolution_png_by_jovicasmileski-d98chn1-1024x341

Online Services May Face Google Tax

The digital space has grown rapidly in the past few years and is expected to grow substantially in next few years too. The biggest beneficiaries of this rapid growth in the digital space are companies earning through digital ads like Google,Facebook,Twitter,LinkedIn etc.

 

Moreover, these companies are located outside India, and hence they are not even subject to any taxes in India. These new business models have created new tax challenges by challenging the current manner of levy of tax which are based on the presence based on permanent establishment rules..
The ‘Google Tax’ or ‘Facebook Tax’ which was first announced in the FY17 budget statement by Finance Minister Arun Jaitley will be levied from June 1. Here’s all you need to know about it — what Google Tax is, who will pay it, and its implications —

As the name suggests, it’s got something to do with e-commerce companies.

 

The Google Tax was announced to introduce a tax on the income as accrue to a foreign e-commerce company outside of India. Google Tax or ‘equalisation levy’ as it’s called in India, is expected to impact the bottomlines of giants like Google, Facebook, and others.

 

Why has the tax been introduced?

The tax has been aimed at technology companies that make money via online advertisements. Their revenue is mostly routed to a tax haven country. This tax will help bring the said companies under the tax radar in India. With this new tax, India has also joined the list of other Organisation for Economic Cooperation and Development (OECD) and European countries where a similar tax is already in place.

 

The government has earned Rs.100 crore in revenue on account of the equalisation levy so far. Companies like Facebook, Yahoo, Twitter and Google earn significant revenues from India from local advertisers. A committee set up by the Central Board of Direct Taxes to examine indirect taxation in India of e-commerce had recommended an equalisation levy of 6-8 per cent on 13 broad services based on the OECD’s Base Erosion and Profit Shifting guidelines.

business team

Importance of hire Reliable Bookkeeping Services?

Business owners in need of reliable accounting services should ensure to hire accomplished accountants. It is quite easy to obtain bookkeeping services because there are practicing individuals as well as companies. The work demands in your accounting department will determine the kind of professional to be hired. When looking for reliable bookkeeping services Coral Springs FL accountants are obtainable online

 

At Reliable Bookkeeping Services, we look for long term relationships. Bookkeeping is not the most exciting task and bookkeepers also like excitement and once internal bookkeeper learns all about your business, they stop learning and that leads to boredom and resignation. Other factor that may influence them to move on is a better opportunity or less appreciation by business owner.

 

At Reliable Bookkeeping Services, we will never leave our clients alone, as we believe in building business relationships for longer term. We have been serving clients in different industries, we always stay enthusiastic and excited about new challenges and domains we will be working on for them. And we promise you will never be disappointed.

 

An accountant is useful in doing your taxes and giving advice on financial strategies, bookkeepers are more concern with the daily operational costs and the bills your business incurs. That is, bookkeepers are more concern with your payrolls, invoices, utility bills, and other immediate financial concerns that needs your attention whereas accountants are more concerned with your business’ overall financial health.

 

Having a clear picture of your finances is one of the most crucial steps in running a business, no matter how small you might deem it to be. Hiring a bookkeeper can save your from a potential heartbreak of losing the fruits of all your hard work simply because you tried to do everything on your own.