1.GST (GOODS AND SERVICE TAX):

Pre 1 st  July 2017, a manufacturer, trader, retailer or any other business was filing returns for Central and State taxes, including but not limited to CENVAT, Octroi, Sales Tax and Excise Duty etc. with individual returns for each of them. A continuous process of filing returns – monthly, quarterly, half-yearly and yearly existed and businesses were apparently occupied throughout the year for filing one or the other return.

The basic features of the returns mechanism in GST include electronic filing of returns, uploading of invoice level information and auto-population of information relating to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level
information matching and auto reversal of Input Tax Credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC smoothly.

Let us Manage your GST Returns Offering GST Return Filing

    • Our Experts file GSTR 1, GSTR 4 & GSTR 3b on your behalf
    • Simply upload your data in the excel template and let us take care of the filing
      process
    • Have a query? Get a Free consultation with our CA team with every purchase
    • Free Reconciliation & determine your right ITC
    • Personalized experience and a hassle free return filing process

2.GSTIN Structure:

It has also come to notice that the guys have devised innovative ways to fool people and ultimately the government. They just put an alpha-numeric code, against the GSTIN heading to dupe the consumers, which unarguably resembles a GSTIN. It is also critical to know, how a GSTIN is structured to spot any malpractices. Let us see, what constitutes a 15 character GSTIN or GST Number:

  • The first 2 digits denote the unique state code in accordance with the Indian Census
    2011. For instance, the state code of New Delhi is 07 and that of Karnataka is 29.
  • The next 10 characters denote the PAN number of the taxpayer.
  • The 13 th  digit denotes the registration number of the taxpayer with the same PAN
    number.
  • The 14 th  digit is ‘Z” by default for all – not intending anything currently.
  • The 15 th  digit is the check digit – can be a number or an alphabet.
    Knowing the above bifurcation can also come to help, when you’re in a dilemma about
    the authenticity of the GSTIN, while paying at the cash counter of your local merchant.

BOOKKEEPING SERVICES

Bookkeeping is the most basic of all accounting functions.Bookkeeping involves maintaining accurate and updated records of all of your company’s financial activity. This includes bank records,
tax filings, payroll records, purchase and sale records, and regulatory filings. These records are essential to regulatory compliance. Proper bookkeeping makes other accounting functions, such as audits, payroll, and tax preparation, much simpler and less time consuming.

Accounting Bookkeeping Services We Offer

  • Accounts receivable services
  • Accounts payable services
  • Bank account reconciliation
  • Invoicing Processing Services
  • Manual Journal Entry Services
  • GST returns
  • General ledger maintenance
  • Assets / equipment ledger maintenance
  • Expenses ledger maintenance
  • Preparing accounts receivable reports
  • Preparing accounts payable reports
  • Preparing ageing reports & summaries
  • Credit card reconciliation services
  • Preparing financial statements
  • Trial balance services
  • Preparing income statements (Profit & Loss)
  • Balance sheet services
  • Preparing sales reports
  • Preparing purchase reports
  • Entry of transactions
  • Inventory services
  • Accounting setup services
  • Day-to-day bookkeeping and accounting
  • Books balanced and reconciled quarterly
  • Management accounts produced quarterly
  • Annual accounts and tax returns preparation
  • Adjustments to year-end accounts

Our Bookkeeping Services are focused at reducing the finance and accounting costs of our clients
by helping them with their management, accounting and tax preparation needs. Personalized and
professional bookkeeping services cover the entire scope of bookkeeping and customers have the
flexibility to choose what they require. We function just as customers’ virtual back office for all their
bookkeeping and accounting work right from set-up, support, maintenance and consultancy with
accounting.

Income Tax in India : Guide, IT Returns, E-filing Process 2019

Taxes in India can be categorized as direct and indirect taxes.

 

  • Direct tax is a tax you pay on your income directly to the government.

 

  • Indirect tax is a tax that somebody else collects on your behalf and pays to the government.

 

Goods and services tax, which has recently been introduced is a unified tax that has replaced all the indirect taxes that business owners have to deal with.

31 January 31 March 31 July Oct – Nov
Deadline to submit your investment proofs Deadline to make investments under Section 80C Last date to file your tax return Time to verify your tax return

Taxpayers and Income Tax Slabs

Taxpayers in India, for the purpose of income tax includes:

  • Individuals, Hindu Undivided Family (HUF), Association of Persons(AOP) and Body of Individuals (BOI)
  • Firms
  • Companies

Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax of 30% of profits, the individual,HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s incomes are grouped into blocks called tax brackets or tax slabs. And each tax slab has a different tax rate. In India, we have four tax brackets each with an increasing tax rate.

  • Income earners of up to 2.5 lakhs
  • Income earners of between 2.5 lakhs and 5 lakhs
  • Income earners of between 5 lakhs and 10 lakhs
  • Those earning more than Rs 10 lakhs
Income Range Tax rate Tax to be paid
Up to Rs.2,50,000 0 No tax
Between Rs 2.5 lakhs and Rs 5 lakhs 5% 5% of your taxable income
Between Rs 5 lakhs and Rs 10 lakhs 20% Rs 12,500+ 20% of income above Rs 5 lakhs
Above 10 lakhs 30% Rs 1,12,500+ 30% of income above Rs 10 lakhs

Exceptions to the Tax Slab

One must bear in mind that not all income can be taxed on slab basis. Capital gains income is an exception to this rule. Capital gains are taxed depending on the asset you own and how long you’ve had it. The holding period would determine if an asset is long term or short term. The holding period to determine nature of asset also differs for different assets.

A quick glance of holding periods, nature of asset and the rate of tax for each of them is given below.

Type of capital asset Holding period Tax rate
House Property Holding more than 24 months – Long Term Holding less than 24 months – Short Term 20% Depends on slab rate
Debt mutual funds Holding more than 36 months – Long Term Holding less than 36 months – Short Term 20% Depends on slab rate
Equity mutual funds Holding more than 12 months – Long Term Holding less than 12 months – Short Term Exempt (until 31 March 2018) Gains > Rs 1 lakh taxable @ 10% 15%
Shares (STT paid) Holding more than 12 months – Long Term Holding less than 12 months – Short Term Exempt (until 31 March 2018)Gains > Rs 1 lakh taxable @ 10% 15%
Shares (STT unpaid) Holding more than 12 months – Long Term Holding less than 12 months – Short Term 20% As per Slab Rates
FMPs Holding more than 36 months – Long Term Holding less than 36 months – Short Term 20% Depends on slab rate

Defining Income

Income has been very widely defined in the Income-tax Act. In simple words, income includes salary, pension, rental income, profits out of any business or profession, any profit made out of the sale of any specified asset, interest income, dividends, royalty income etc. The law classifies income under 5 major heads as already mentioned above.

  • Salary Income
  • House Property income
  • Profits and Gains from Business or Profession
  • Capital Gains
  • Income from other Sources

Home ownership

  • Stamp duty and Registration under Section 80C
  • Home loan principal and interest
  • First time homeowner benefit of Rs.50,000 under Section 80EE
Deduction on Maximum allowed (for self-occupied house property) Maximum allowed (for property on rent)
Stamp duty and registration + principal Rs.1,50,000 within the overall limit of Section 80C Rs.1,50,000 within the overall limit of Section 80C
Deduction on home loan interest under Section 24 Rs.2,00,000 No cap (but rental income must be shown in the income tax return) Further, maximum loss from house property capped at Rs 2 lakhs
Deduction for first-time homeowners under Section 80EE *certain conditions apply Rs.50,000

Home renting

  • House Rent Allowance or HRA (for salaried only) Given how many Indians move cities for work, this is a common allowance most salaried individuals can find in their payslips. If you are renting an apartment, be sure to claim this in your tax return.
  • Section 80GG (if you are renting and don’t get HRA) If you are not salaried, or you are still salaried, but don’t get HRA, then you can claim deduction for rent under Section 80GG. Learn more.

Health

  • Life insurance premium under Section 80C
  • Medical insurance under Section 80D
  • Preventative health checkups under Section 80D
  • Medical bills (for salaried only)( replaced with standard deduction of Rs 40,000 effective 1 April 2018)

Tax Deductions for health insurance under Section 80D in FY 2017-18

Person insured Maximum deduction Below 60 years Maximum deduction 60 years or older
You, your spouse, your children Rs.25,000 Rs.50,000
Your parents Rs.25,000 Rs.50,000
Preventative health checkup Rs.5,000 Rs.5,000
Maximum deduction (includes preventative health checkup) Rs.50,000 Rs.1,00,000

Long-term savings

Employee provident fund (for salaried only)Companies cut 12% of your basic salary and put it in a fund managed by EPFO.Public provident fundIndividuals can open a PPF account from a post office or a public sector bank like State Bank of India and ICICI Bank. All of these allow you a deduction under Section 80C upto RS 1.5 lakhs Contribution to NPS is also another tax saving avenue for claim of deduction under Section 80CCD

Other investment avenues

Investment Risk Interest Guaranteed Returns Lock-in Period
ELSS funds Equity-related risk 12-15% expected No 3 years
NSC Risk-free 7.6% Yes 5 years
5-Year FDs Risk-free 7-9% expected Yes 5 years

Income Tax Payment

The Government collects income tax from three channels:

  • TDS
  • Advance tax
  • Self Assessment tax

 

TDS

  • TDS exists to help government get tax throughout the year. There’s a prescribed table on how much tax deducted under what circumstances.
  • Your employer cuts TDS based on the information available to him about you. So if you’ve made investments, but have not declared or if you live in a rented house, but have not shared rent receipts, your finance department will have no choice but to deduct tax based on only thing they know – your CTC.
  • This is why the investment proofs deadline in your office is super important. Save yourself some headache and submit your investment proofs on time.
  • Banks don’t know if you’re working in a company or if income from fixed deposits is what you solely rely on. So they deduct a standard 10% tax before they give away the interest. Now if you fall in the 20% or 30% bracket, it’s on you to pay the remainder of the income tax. That’s why sometimes you may find yourself paying some tax at the time of filing a tax return.
  • Make sure banks have your PAN number. They deduct 20% tax if they don’t have your PAN in their records.
  • Anyone who’s receiving an income of a specified nature say salary, interest, commission, rent, professional income etc. will have some percentage of tax withheld as prescribed by the government.

 

Advance Tax

Self-employed people must do the calculation themselves and pay the tax to the Government periodically every quarter.The deadlines are:

Due Date Advance Tax Payable
On or before 15th June 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

To calculate your advance tax:

  • Add up all the invoices received and include future payments you will be receiving till March 31 to estimate your taxable income.
  • Deduct expenses directly related to your business, and any investments you have made under Section 80C in order to arrive at your taxable income.
  • Determine your tax liability for the year
  • Reduce the Tax already deducted at source from your tax liability as determined above
  • If the remaining tax payable is greater than Rs 10,000 you will have to pay advance taxes based on the rates prescribed in the above table.
  • Use the Income Tax Calculator to determine your tax liability

 

 

Self Assessment Tax

When you are filing a tax return and you find out that you need to pay additional tax, you’d be paying self assessment tax. Another way to think about this would be.

  • if you are paying tax for a financial year after the deadline has ended, you will pay self assessment tax.
  • if you are paying tax for a financial year during the financial year, you will pay advance tax

 

ITR Forms

ITR forms i.e. the return filing forms have been prescribed differently based on the class of taxpayers and the source of income. See below for further clarity

OTHER SERVICES

What’s MSME

What are Micro, Small & Medium Enterprises ?

Definitions of Micro, Small & Medium Enterprises In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:

  1. Manufacturing Enterprises-he enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
  2. Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment..

The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified,vide S.O. 1642(E) dtd.29-09-2006 are as under

Manufacturing Sector
Enterprises Investment in plant & machinery
Micro Enterprises Does not exceed twenty five lakh rupees
Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees
Medium Enterprises More than five crore rupees but does not exceed ten crore rupees
Service Sector
Enterprises Investment in equipments
Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but does not exceed two crore rupees
Medium Enterprises More than two crore rupees but does not exceed five crore rupees

PANCARD

PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

WHO MUST APPLY FOR PAN?

  • Anybody who earns a taxable income in India, including foreign nationals who pay taxes here
  • Anybody who runs a business (be it retail, services or consultancy) that had total sales, turnover or gross receipt exceeding Rs 5 lakh in the previous financial year


HOW TO APPLY?

  • Use ‘Form 49A’ or ‘Form 49AA’ as applicable to you. Find more details at incometaxindia.gov.in.
  • You can find the location of PAN card offices in any city from the websites of the Income Tax Department or National Securities Depository Limited (NSDL).
  • You will need copies of proof of Identity and address.

 


WHY GET A PAN NUMBER?

  • For payment of direct taxes
  • To file income tax returns
  • To avoid deduction of tax at higher rate than due
  • To enter into specific transaction such as:

(a) Sale or purchase of immovable property valued at Rs 5 lakh or more
(b) Sale or purchase of a vehicle other than a two wheeler
(c) Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
(d) Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
(e) Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
(f) Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
(g) Payment of an amount of Rs 50,000 or more to a company for acquiring shares
(h) Any mutual fund purchase
(j) Deposit exceeding Rs 50,000 with any single banking institution in 24 hours.
(k) Payment exceeding Rs 5 lakh for purchase of bullion and jewellery

Shops & Establishment (Gumastadhara license)

About What:

To regulate conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, other places of public entertainment and other establishments. Gumastadhara Ahmedabad

Bombay Shops and Establishment Act – 1948 Gumastadhara License Vadodara. Gumastadhara Certificate ,Shop act License

Provisions include Regulation of Establishments, Employment of Children, Young Persons and Women, Leave and Payment of Wages, Health and Safety etc. Gumasta License Vadodara.

 

Applicability & Coverage:

 

It applies to all local areas specified in Schedule-I

 

Establishment means any establishment to which the Act applies and any other such establishment to which the State Government may extend the provisions of the Act by notification.

 

Employee means a person wholly or principally employed whether directly or through any agency, whether for wages or other considerations in connection with any establishment.

 

Member of the family of an employer means, the husband, wife, son, daughter, father, mother, brother or sister and is dependent on such employer Gumasta License Vadodara.

 

Returns:

 

Form-A for New Registration

 

Form-D for renewal.

 

The employer has to submit these forms to the authority notified along with the old certificate of registration and the renewal fees for minimum one year’s renewal and maximum of five year’s renewal

 

Form-E (Notice of Change) {Rule 8} for any modification or changes in current certificate. i.e. Establishment name, Address, Category, etc. Gumastadhara Ahmedabad

 

Registers:

 

Form-A {Rule 5} Register showing dates of Lime Washing etc

 

Form-H, Form-J {Rule 20(1)} (if opening & closing hours are ordinarily uniform) Register of Employment in a Shop or Commercial Establishment

 

Form-I {Rule 20(3)}, Form-K (if opening & closing hours are ordinarily uniform) Register of Employment in a Residential Hotel, Restaurant, Eating-House, Theatre, or other places of public amusement or entertainment

 

Form-M {Rule 20(4)} Register of Leave – This and all the above Registers have to be maintained by the Employer