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Accounting Services


R K Associates provides computer-based accounting services. Many accounting tasks have been simplified with the help of computer-based software. An Enterprise resource planning (ERP) system is commonly used for a large organisation and it provides a comprehensive, centralized, integrated source of information that companies can use to manage all major business processes, from purchasing to manufacturing to human resources.

Accounting information systems have reduced the cost of accumulating, storing, and reporting managerial accounting information and have made it possible to produce a more detailed account of all data that is entered into any given system.

We as a service provider, relieve you from the day to day maintenance of books of Accounts. We offer to keep & maintain books on your behalf at cost effective fees.

Various laws of India have prescribed the requirement of maintenance of books of accounts. Section 128 of Companies Act 2013 prescribes as follows:

“Every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting.”


Various regulatory authority like IRDA, TRAI, SEBI, RBI have also prescribed their requirements.

There is famous proverb in Hindi which translate as “first write then pay”. Every transaction which take place need to be recorded so that any future dispute maybe avoided. Initially businessman used to record their transactions at single entry system or at their own discretion. By the time, recording methods have changed. The most preferred accounting system now-a-days is double entry system. Double entry system has legal backing as governments and regulatory authorities prefer it.

Apart from above, Section 44AA of Income Tax Act 1961 has prescribed the requirements of maintenance of books of accounts which covers wider range of business entities under it.

(1) Every person carrying on the Legal, Medical, Engineering, Accountancy or Interior Decoration or any other profession as notified by CENTRAL BOARD OF DIRECT TAXES (CBDT) are required to maintain such books of accounts & other documents as may enable the Assessing Officer to compute Assesses total income in accordance with provisions of this act.

(2) Following are the persons who are required to maintain books of accounts: -

(i) Person carrying on business or profession if his total income exceeds Rs.1,20,000 or his total Turnover or Gross Receipts in the business or profession exceeds Rs.10,00,000 in any of the 3 years immediately preceding the previous year.

(ii) Where the business is newly setup, if his total income is likely to exceed Rs.1,20,000 or his total Turnover, Gross Receipts likely to exceed Rs.10,00,000.

(iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee u/s 44AE or 44BB or 44BBB and assessee has claimed his income to be lower than the profits and gains so deemed to be the profits and gains of his business.

(iv) where the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year.


Rule 6F: Books of Account to be maintained:

Every person carrying on Legal, Medical, Engineering or Architectural Profession or Profession of Accountancy or Interior Decoration or Film Artist or Authorized Representative if his Gross Receipts exceeds Rs.1,50,000 in all the three years immediately preceding the previous year or

Where the profession has been newly set up in the previous year his gross receipts are likely to exceed Rs.1,50,000 in that year.


BOOKS TO BE MAINTAINED

The following books of accounts and documents are required to be maintained : -

ü Cash book

ü Journal

ü Ledger

ü Carbon copies of the bills & receipts issued by theperson in relation to sums exceeding Rs.25

Original bills and receipts issued to the personin respect of the expenditure incurred.


PERIOD FOR WHICH THE BOOKS & OTHER DOCUMENTS TO BE MAINTAINED

The above books of accounts and other documents shall be kept and maintained for a minimum period of 6 years from the end of relevant assessment year. If an assessment in relation to any assessment year has been reopened u/s 147 all the books of accounts and other documents shall continue to be kept and maintained till the assessment so reopened has been completed.


PLACE WHERE BOOKS TO BE MAINTAINED

The books and documents shall be kept and maintained at the place where the person is carrying on the profession or where there is more than one place at the principal place of business.

Auditing Services


An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. The auditor perceives and recognises the propositions before them for examination, obtains evidence, evaluates the same and formulates an opinion on the basis of his judgement which is communicated through their audit report.

RKA, helps clients by understanding the increasing complexity of the regulatory environment, the need for greater transparency in operations and disclosure norms. The practice provides assurance to the various stakeholders beyond the traditional critique of numbers.

We, at RKA provide the following Assurance Services:

ü  Statutory Audits for Corporates

ü  Tax Audits for Corporates and Individuals

ü  Internal Audits

Auditing Service is at the core of any successful and visionary Financial Management setup. Employing advanced techniques and creative approach in Auditing for better financial & administrative controls, we also suggest improvements for more efficient operation, stronger financial structure and improved system of accounting and administrative controls. Assurance services add efficiency and profitability to your organization by providing independent credibility to your financial statements, professional advices to management, and expedient solutions to improve the systems & performance.

The financial statement audit has never been more important. In today’s business environment there is more scrutiny and skepticism of a company’s financial statements than ever before. Investors expect more: greater reliability, more oversight and clear evidence of internal controls. Corporate management, boards and audit committees, internal and external auditors, analysts and other investment professionals all have important roles to play in rebuilding investor trust by executing their respective responsibilities, keeping in mind both legal obligations and the heightened expectations of investors. Meeting investor expectations begins with the completeness and accuracy of information contained in a company’s financial statements.

A well-conducted audit can provide business owners with valuable information and assurance that statements are fairly presented. At SGA we view the audit process as an opportunity for our clients to learn more about their businesses so they are better equipped to communicate with banks, investors and partners. We provide our clients with an objective presentation of their financial information as well as qualified advice and observations.

Our Experience in Auditing Service

We are experienced at identifying opportunities and we have helped many clients take advantage of changing industry trends and legislation to grow their businesses. Our technology allows us to work efficiently and accurately. We have been providing auditing and assurance services to entrepreneurial companies.

Our audit philosophy is based on integrity, objectivity, independence and strict adherence to all professional standards, regulations and laws. The primary objective of every audit is to express an opinion on the fair presentation of the financial position and operational results of our clients.

For organisations that require an audit for statutory or regulatory reasons associated with the filing of their annual and periodic financial information, RKA can provide high quality audit services.

RKA’s work takes into account all current and where appropriate, prospective auditing, accounting, and reporting regulations and guidance. Our audit clients include a few automobiles corporations, as well as many small and medium-sized companies.

ü  Compliance with regulations

ü  Advice on controls and processing system weaknesses

ü  Confirmation of accounting treatments with respect to complex transactions

ü  Increased monitoring of prospective accounting and regulatory changes

ü  Independent review of externally reported information

ü  Accountants’ reports

Our range of Business Assurance Solutions include: -

ü  Statutory Audit under Companies Act

ü  Tax Audit under the Income Tax Act

ü  Internal Auditing Services

Statutory Audit under Companies Act, 2013

Under various kinds of statutes, all the businesses or entities require to have their accounts audited properly. We undertake the same under the statues of the Companies Act 2013, Banking Regulation Act, Income tax act 1961 and Maharashtra Value Added Tax Act. Scrupulous Stock Audits are also made by us to facilitate the final auditing of the accounts of a company. There are a large number of different accounts to be maintained for managing all the operations, activities, processes, etc. concerned with a company of India, or a joint venture. Proper maintenance and precise auditing of such stocks are essential for the company to run smoothly.

Tax Audit under the Income Tax Act, 1961

Every assessee, whose annual turnover exceeds Rs. 1 crore or the total business receipts from any profession exceed the amount of Rs.25 Lacs in any previous year, is bound to get the accounts audited and report the same according to the section 44 AB of the Income Tax Act. We conduct such tax audit services for all small and big companies and corporations of diverse sectors.

Internal & Management Audit

Maximizing the value and effectiveness of the internal audit function requires an understanding of an organization’s objectives, risks, risk management priorities, regulatory environment, and the diverse needs of critical stakeholders including executive management, the board, employees, and shareholders. Ultimately, these needs determine the risk profile of the organisation and the strategic focus, organisation, resources and practices required of its internal audit department.

We at RKA, can assist organisations that need help improving the quality and effectiveness of their internal audit processes in a number of ways.

First, by advising and assisting in the development of internal audit and risk management methodologies, including assessing whether the internal audit function is delivering effectively to stakeholders.

Second, by providing internal audit resourcing solutions, including full outsourcing or complementing in-house functions with specialist skills or geographical coverage.

Third, by supporting internal audit functions with software to enhance and support their work. In addition, we can develop training for internal auditors using our extensive market and industry knowledge to create highly-tailored solutions.

For in-depth and scrupulous checking of all day-to-day transactions, large business organizations inevitably need the help of Internal Audit. Generally, every company is required to verify physically his fixed assets and stock in trade, once in a year through an independent agency.

While conducting internal audits we devise means and suggest methods to properly streamline the working processes advise maintenance of appropriate internal records, to keep fool – proof mandatory records, introduce cross-check system of money and material handling, and plan different strategies for their overall improvement.

Our Approach towards the Audit Assurance Services offered by us under this category include:

ü  Planning and preparation of ingenious audit approach and programs, as per your requirements.

ü  Evaluating the strengths and weaknesses of the audit areas, and reporting their efficiency, effectiveness, and the state-of-control by analyzing scrupulously the audit evidence.

ü  Presentation of the reports of findings, conclusion derived, and the suggested recommendations, to inform the management, about the adequacy of controls and effectiveness of operations.

ü  Appraising the actions taken by the management regarding the follow-up and the reporting techniques.

ü  Clinging to the norms of ethical and professional standards, to ensure the impeccable quality and consistency of the audit work.

Financial Service


R K Associates, Financial Services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, insurance companies, accountancy companies, consumer-finance companies, individual managers and some government-sponsored enterprises.


Project report

If you have started a new business or expending an existing business, you need to prepare project report to get financing from a bank or any other financial institution.

It is not always expending the business or starting a business that requires external financing but also working capital requirement warrants for a financial assistance.

Normally when you apply for a loan from bank, you are asked for different set of documents. I am listing few key documents that banks require you to provide them.

•  Project Report

•  Income Tax filing documents

•  Financial statements

•  Details of existing liabilities



What is a project report?

Project report is a detailed statement which lists down the upcoming costs and revenues covering quantitative and qualitative aspects of the project being considered for reporting.

This was a layman explanation and for financing purpose. Different type of project reports are prepared for different purpose.


What details should be covered in a project report for bank loan?

A project report should contain key matters such as details about project, capital requirement, utilization of funds, expected return on investment, break even period, expected revenue and expenses over a period of time.

To be straight forward, a project report should be appealing enough to sanctioning authority to sanction your loan.

In some cases, banks do not require a details project report, instead they are happy with 2 sheets of projected profit &loss account and balance sheet.

Business Idea


We Turn Business Possibilities into Reality

For entrepreneurs, turning a passion into a business is the ultimate dream. But that dream doesn’t come easily. It’s hard work, and there are challenges around every corner.

Fortunately, entrepreneurs don’t have to go it alone. Their chance of success increases with access to the business knowledge and guidance of experienced professionals.

RKA is where they meet. It’s a free, easy-to-use service that connects entrepreneurs with volunteer mentors so they can solve problems and build businesses together. With a growing community and a record of thousands of mentor-mentee matches, RKA’s mission is to leverage the power of mentoring to help small businesses thrive.

 

Here are a number of ways (in no particular order) to help you decide on a new business name:

1. Create a Business Plan:  If you can develop a clear business plan including the long-term goals of your business idea, narrowing down your choices for a business name will be easier.

2. Choose a Business Structure:  Depending on where you live, Sole-proprietorships and Partnerships often are not considered legal entities and may have less restrictions on name registration.  Structures such as LLC’s and Corporations will have more requirements.

3. Choose a Specialty:  Choosing a specialty or “niche” can help narrow down name ideas, and also may provide a unique and original name other may not have.  For example, if you are starting a jewellery business, and enjoy mainly working with beads, you may want to include the word “beads” in your jewellery business name.

4. Reach a Broader Audience:  If you have a variety of skills or are not sure which direction your business may go, you may not want to limit your business name to a specialty.  Using the jewellery example, you may want to specialize in beads, but not limit your business to just beads.  In this case, choose a more general name that indicates a jewellery business.  Use your marketing materials to indicate beads as your specialty, but also show that you create many types of jewellery.

5. Consider Your Target Audience:  What type of customer is your primary target?  If you are in an affluent area, a name including words such as “Premier” or “Elite”, would help attract the wealthier clientele.  In this case you could stick with a strong general business name, such as using your own name, or using a name that indicates quality and prestige.  If you are in a lower income area, you may wish to choose a business name that indicates value or affordability such as“Affordable” or “Budget”.

6. Use Your Own Name:  Do you want your own name in the business name?   Using your own name adds a personal touch that may appeal to customers.  You will most likely have less restrictions in registering your business name if your full name is used (“Raj Cleaning Service”).  If just part of your name is used (“Walsh Cleaning”) you may still have to file a fictitious name and/or a DBA (doing business as).

7. Use a Simple Name with A Catchy Slogan:  You may also choose a simpler business name and focus on a catchy slogan that will define your business.   While “Raj Auto Detailing” may not sound too fancy,a tagline associated with your business name can give you a big boost. You can see how having “Raj Auto Detailing- Elite Vehicle Detailing Services” on your business card, advertisement, or plastered on the side of your vehicle may have a greater effect than just “Raj Detailing”.

8. Choose a name near the front of the alphabet:  Anold-school technique for deciding on a business name would be to choose a name that would show up alphabetically near the front of the traditional phone book. Examples for this would be “Apple Auto” or “Apex Roofing”. This technique may not be as beneficial, as it used to be with the innovations of modern marketing strategies utilizing social media and search engines such as Google.

9. Choose a name that easy to remember:  Using a short simple name may be more beneficial than a long, difficult-to-spell name.

10. Don’t just settle on any business name, thinking you can just change it later on:  Obviously, you could change your name at some point down the road, but doing so could hurt your business.  Previous customers may have a hard time finding you.  You may miss out on referrals as your old business name is no longer used.  You will have to spend time and money changing all marketing materials, your website, and branding to reflect your new name.  It is better to take your time and decide on a name you will be happy with years down the road, rather than one you will be regretting a few years into your business.  Not all businesses fail or struggle because they decided to change their name, but that possibility should definitely be something you should consider now, rather than later.

11. Make sure your business name is legal: After choosing your name, you will need to register with the proper institutions.  You should make sure the name you are choosing isn’t trademarked or used by someone else in the area.  Registering your business name may not only be necessary on local level such as with your city, but also with other government agencies for tax purposes.

12. Choose a good website address to complement your business name:  While it would be ideal to have your business name as the actual web address, it isn’t always possible.  Instead of using your actual business name, you could use some other variation that doesn’t even include your name such as “DenverAreaLandscaping.com”.  You could even choose a web address that reflects your specialty such as “PhillyCupcakes.com”. The key with choosing a website name is to keep it easy to remember and easy to spell.  If your website is set up properly, customers will have no problem finding you, no matter what the web address is.

GST Registration






GST registration is mandatory for all entities involved in the buying or selling or providing of services in India. R K Associates offers an easy online process to register for GST from Rs. 2,500.00*.

Documents Required for Regular Taxpayers for

GST Registration

 

1.    PAN Card of GST Registration Applicant

2.    Proof of Business Registration or Incorporation Certificate

3.    Identity & Address Proof of Promoter with Photograph

4.    Address  Proof for the Place of Business

5.    Bank Account details showing Name, Address, Account No. & IFSC Code


GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses 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 register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

As per the GST Council, entities in special category states with an annual turnover of Rs.10 lakhs and above would be required to register under GST. All other entities in rest of India would be required to register for GST if annual turnover exceeds Rs.20 lakhs. There are also various other criteria's, that could make an entity liable for obtaining GST registration - irrespective of annual sales turnover. Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST.

R K Associates is the leading business services platform in India, offering a variety of services like income tax filing, GST return filing, private limited company registration, trademark filing and more. R K Associates can help you obtain GST registration in India and maintain GST compliance through a proprietary GST accounting software. The average time taken to obtain GST Certificate is about 5 - 10 working days, subject to government processing time and client document submission. Get a free consultation on GST and GST return filing by scheduling an appointment with an R K Associates Advisor.


The following documents must be submitted by regular taxpayers applying for GST registration.

PAN Card of the Business or Applicant

GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.

Identity and Address Proof along with Photographs

The following persons are required to submit their identity proof and address proof along with photographs. For identity proof, documents like PAN, passport, driving license, aadhaar card or voters identity card can be submitted. For address proof, documents like passport, driving license, aadhaar card, voters identity card and ration card can be submitted.

Proprietary Concern – Proprietor

Partnership Firm / LLP – Managing/Authorized/Designated Partners (personal details of all partners are to be submitted but photos of only ten partners including that of Managing Partner are to be submitted)

ü Hindu Undivided Family – Karta

ü Company – Managing Director, Directors and the Authorised Person

ü Trust – Managing Trustee, Trustees and Authorised Person

ü Association of Persons or Body of Individuals –Members of Managing Committee (personal details of all members are to be submitted but photos of only ten members including that of Chairman are to be submitted)

ü Local Authority – CEO or his equivalent

ü Statutory Body – CEO or his equivalent

ü Others – Person(s) in Charge

Business Registration Document

Proof of business registration must be submitted for all types of entities. For proprietorship there is no requirement for submitting this document, as the proprietor and proprietorship are considered the same legal entity.

In case of partnership firm the partnership deed must be submitted. In case of LLP or Company, the incorporation certificate from MCA must be submitted. For other types of entities like society, trust, club, government department or body of individuals, registration certificate can be provided.

Address Proof for Place of Business

For all places of business mentioned in the GST registration application, address proof must be submitted. The following documents are acceptable as address proof for GST registration.

(I)  For Own premises

Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

(II)  For Rented or Leased Premises

A copy of the valid rental agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill. If rental agreement or lease deed is not available, then an affidavit to that effect along with any document in support of the possession of the premises like copy of electricity bill is acceptable.

(III)  SEZ Premises

If the principal place of business is located in an SEZ or the applicant is an SEZ developer, necessary documents/certificates issued by Government of India are required to be uploaded.

(IV)  All Other Cases

For all other cases, a copy of the consent letter of the owner of the premises with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents can be uploaded.

Bank Account Proof Scanned copy of the first page of bank passbook or the relevant page of bank statement or scanned copy of a cancelled cheque containing name of the Proprietor or Business entity, Bank Account No., MICR, IFSC and Branch details including code.

TDS Return


GST Return Filing


GST Return Filing

Taxable persons and entities under GST are required to file various GST returns. Under GST, return filing is a very important activity that serves as the link between the taxpayer and the government. In the GST return, the taxpayer is required to furnish details like the particulars of business activity, declaration of tax liability, payment of taxes and other information as requested by the government. All returns in GST are required to be filed electronically and facility is to be provided for manual filing of GST returns, wherein the return can be prepared offline and uploaded on the GSTN by the taxpayer or a facilitation centre.

Who should file GST returns?

Registered persons who are taxable under GST are required to file GST returns. Therefore, any registered person who has obtained registration but has not crossed the exemption limit (i.e., Rs.20 lakhs across India, except for Northeastern and Hill states wherein its Rs.10 lakhs) will not be required to file GST return until they cross the exemption limit. However, once the exemption limit is crossed and the taxpayer begins filing GST returns, even if there is no taxable supplied made or received during a period, the taxpayer is required to file a NIL return. Hence, not filing GST return is not an option and without filing the return of a period, next return cannot be filed.

Need help with GST?

Talk to an R K Associates GST Expert for help with GST registration, GST filing and more.

GSTR-1 Return of Outward Supply

GSTR-1 or return of outward supply must be filed by GST registered taxpayers before the 10th of every month. In the GSTR-1 or return of outward supply details like item wise detail of goods and services supplied with HSN or SAC codes, supply with respect to all B2B transactions, details of all inter-state supplies of B2C transactions above Rs.2.5 lakhs and all other invoices of less than Rs.2.50 lakhs with state wise summary details of all B2C transactions must be submitted. GSTR-1 should also contain details like zero-rated supplies, return of goods received in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices.

GSTR-2 Return of Inward Supply

GSTR-2 or return of inward supply must be filed by GST registered taxpayers before the 15th of every month. In the GSTR-2 or return of inward supply, taxpayers are required to verify, modify or provide details of all supplied received during the period. Since, details of all inward supplies would have been filed by all taxpayers on the 10th of each month, most details in GSTR-2 would be auto-populated by the system. In addition, taxpayers are also required to declare details of all tax to be paid on reverse charge basis, import of goods or services, debit and credit notes and supplies received from persons not registered under GST and composition suppliers.

GSTR-4 Composition Scheme

GSTR-4 is a GST Return that has to be filed by a Composition Dealer. Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer opting for the composition scheme is required to furnish only 1 return which is GSTR-4. It has to be filed on a quarterly basis.The due date for filing GSTR 4 is 18th of the month after the end of the quarter.GSTR-4 cannot be revised after filing on the GSTN Portal. Any mistake in the return can be revised in the next month’s return only. It means that, if a mistake is made in the GSTR-4 filed for the July-September quarter, the rectification for the same can be made only when filing the next quarter’s GSTR-4.

GSTR-3B

STR-3B is a monthly self-declaration that has to be filed a registered dealer from July 2017 till March 2018. Points to Note:

üYou must file a separate GSTR-3B for each GSTIN you have

üTax liability of GSTR-3B must be paid by the last date of filing GSTR-3Bfor that month

üGSTR-3B cannot be revised

Every person who has registered for GST must file the return GSTR-3B including nill returns.

ü However, the following registrants do not have to file GSTR-3B

ü Input Service Distributors & Composition Dealers

ü Suppliers of OIDAR

ü Non-resident taxable person

 GSTR-3 Monthly Return

GSTR-3 or monthly GST return must be filed by GST registered taxpayers before the 20th of every month. In the GSTR-3 or monthly GST return, taxpayers are required to verify, and provide details of inward/outward supplies, input tax credit availed, tax payable, tax paid and other details as required. Majority of the information in the monthly GST return would be auto populated from the GSTR-1 and GSTR-2 return filed by the taxpayer on the 10th and 15th of each month. Only details to be provided by the taxpayer in GSTR-3 would be information relating to payment of tax and other information not previously provided in GSTR-1 and GSTR-2.

GSTR-9 Annual Return

GSTR-9 or annual GST return must be filed by GST registered taxpayers before the 31st December of the end of the financial year, in respect of which its filed. Annual GST return would be a detailed return which contains all the information filed by the taxpayer during the financial year, including income and expenditures under various heads, monthly tax payment reconciliation, refund details and pending arrears. In addition to the information submitted in the return, the taxpayer could also be required to furnish audited financial statements, reconciliation statements and other documents as required for the GST regulator from time to time.

Late Fees and Penalty

Interest is 18% per annum. It has to be calculated by the tax payer on the amount of outstanding tax to be paid. Time period will be from the next day of filing to the date of payment.

As per GST Act Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. Maximum is Rs. 5,000. There is no late fee on IGST.

Late fees for GSTR-3B of July, Aug and Sept waived. Any late fees paid for these months will be credited back to Electronic Cash Ledger under ‘Tax’ and can be utilized to make GST payments.

As per Notification No. 73/2017 – Central Tax late Fee for filing GSTR-1, GSTR-3B and GSTR-4, GSTR-5, GSTR-5A and GSTR-6 after the due date have been reduced to:

Rs. 50 per day of delay

Rs. 20 per day of delay for taxpayers having Nil tax liability for the month.

GST Compliances


Goods and Services Tax (GST) is India’s biggest indirect tax reform in decades.

GST will integrate India into one common market by removing the various tax and fiscal barriers between the states. Goods and Services Tax (GST), as the name suggests will be tax levied on goods and services during the point of sale or rendering of service. GST will be applicable for all goods and services, expect the exempted class of goods and service. Having passed various stages, the GST regime in India is now set to roll out from 1st July, 2017.


Goods under GST

Section 2(49) of the model law on GST defines goods as every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply. Hence, as per the definition, goods would include movable property, actionable claim, growing crops/grass, things attached to land or forming part of land, materials, commodities and articles. Goods as defined by GST Model Law does not however include money, securities, immovable property and land.


Services under GST

According to the Model Law on GST, Section 2(92) defines services as “anything other than goods”. Hence, anything or any activity would fall under the GST tax coverage, and anything not defined as a goods will be defined as a service. Further, as per GST Law, service is defined as any activity relating to use of money or its conversion by cash or any other mode, from one form, currency or denomination to another form, currency or denomination, for which a separate consideration is charged. However, though services include transactions in money, it does not include money and securities.


GST Network

GST is backed by a robust Information Technology (IT) infrastructure for registration of taxpayers, processing of GST returns, managing GST remittances, refunds, auditing and levy of penalty. The Information Technology infrastructure behind GST, is controlled by the GSTN or GST Network, a Section 8 Company (not-for-profit company) promoted by Central Government, State Governments and other non-Government Institutions. The Government of India holds 24.5% stake in the GSTN, while state Governments combined hold 24.5% state and the balance 51% is held by Non-Government Institutions. Thus, GSTN will act like a clearing house that is self-sustaining through levey of charges on taxpayers and tax authorities using the GST Network.

Levy of GST

Both the Central Government and State Governments would simultaneously levy GST across the value chain. GST levied and collected by the Central Government would be Integrated Goods and Services Tax (IGST) and the State Governments would levy and collect (SGST) on transactions within the State.

Under GST, both the IGST and CGST would become payable at the “time of supply”, as defined in the GST Law. In terms of goods, time of supply would be on removal of goods or receipt of payment or issuance of invoice or date on which the buyer shows receipt of goods. For services, time of supply is on issuance of invoice or receipt of payment or date on which recipient shows receipt of services.


Integrated Goods and Services Tax (IGST)

Integrated Goods and Services Tax is a tax levied on the supply of any goods or services in the course of inter-state trade or commerce. IGST would be applicable to all of India.


State Goods and Services Tax(SGST)

SGST is tax levied under the GST regime on intra-state supplies of goods and services. SGST will be administered by the respective State Government.


Guide to CGST, SGST and IGST

GST is a destination tax, meaning the tax base will shift from origin to consumption. Hence, the imports or end-use will be liable to tax and exports or production will be relieved of the burden of tax. Under the present regulation, on a taxable event, there could be multiple tax liabilities like central excise, in case of manufacturing, service tax in case of sale of service and State VAT in case of sale of goods. Under GST, there would be a shift from multiple taxes to a single taxable event.


Inter-State vs Intra-State

To understand the concepts of CGST, SGST and IGST, it is first important to understand the concept of inter-state vs intra state supply of goods and service, under GST. As in every taxable transaction, it is important to distinguish between inter-state vs intra-state supply to determine if CGST or SGST or IGST would be applicable.

To determine if a supply is inter-state or intra-state, the location of the supplier and the place of supply must first be determined.


Intra-State Supply

An intra-state supply of goods or service is when the place of supply is in the same state as the location of the supplier. Intra-state supply does not include supply of goods/service to SEZ units or developers, imports or exports.


How GST is Levied?

GST would be levied by both, the Central Government and the State Government, on supply of goods and/or services. The power to tax on supply of goods and services would also be vested in the hands of both, the State and Central Government. However, in case of inter-state supply, the power to tax would be vested with the Central Government, while the revenue of the final transaction would be transferred to the State and the Union similar to intra-state transaction. The following model shows how GST is levied in India broadly:


Meaning of CGST or Central GST

Central GST or CGST would be levied under the CGST Act on the intra-state supplies of goods and services. Hence in case of intra-state supplies of goods and services, both the Central and State government would combine their levies with an appropriate revenue sharing agreement between them. The power to levy CGST and SGST has been provided for in Section 8 of the GST Act, where it has been mentioned that:

The following taxes shall be levied on all intra-state supplies of goods, or services or both, at such rates specified in the Schedule to the said Act on the recommendation of the Council, but not exceeding 14%, each. Such CGST and SGST is to be paid by a taxable person.


Highlights of CGST

Ø CGST is applicable on both, goods and services.

Ø CGST is levied by the Central Government through a separate statute on all transactions of goods and services made for a consideration.

Ø Proceeds would be shared between the Central and State Government.


Inter-State Supply

An inter-state supply of goods or service is one where the location of supplier of goods/service and place of supply are in different states. In addition, supply of goods or service to or by an SEZ developer or SEZ unit, supply in the course of import of goods or service, supply when supplier is located in India and the place of supply is located outside India (export) and any other supply not covered under intra-state is treated as inter-state supply.


Meaning of SGST or State GST

State GST or SGST is a tax levied under the SGST Act on intra-state supplies of goods and services, that is administered by the respective State Government. SGST lability can be set off against SGST or IGST input tax credit only.


Highlights of SGST

Ø SGST is levied by the State Governments through a statute on all transactions of supply of goods and services.

Ø SGST would be paid to the accounts of the respective State Government.


Highlights of IGST

Ø Central Government would levy and collect IGST instead of CGST or SGST.

Ø Levied on inter-state supply of goods and/or services.

Ø Includes import of goods and/or services.

Ø Exports would be zero rated.

Ø IGST would be shared between the Central and State Government.


Calculating CGST, SGST and IGST

The following illustrations shows the methodology for calculating CGST and SGST in case of intra-state supply:

Let’s assume that an almond trader in Mumbai, Maharashtra supplies almonds worth Rs.1 lakh to a shop in Pune, Maharashtra and the rate of CGST is 6% and SGST is 6%. In such a case, the almond trader would charge a CGST of Rs.6000 and SGST of Rs.6000 on the basic value of the product. The trader would then be required to deposit the CGST component into a Central Government account while the SGST portion into the account of the concerned State Government.


The following illustrations shows the methodology for calculating IGST in case of inter-state supply:

Let’s assume that an almond trader in Mumbai, Maharashtra supplies almonds worth Rs.1 lakh to a shop in Chennai, Tamil Nadu and the rate of IGST is 12%. In such a case, the almond trader would charge a IGST of Rs.12000 on the basic value of the product. The trader would then be required to deposit the IGST component into a Central Government account.

Tax Planning Services


R K Associates is one of the reliable taxation consultancies that provide authentic Taxation Consultancy Services in Bihar. We specialize in individual taxation matters for expatriates in Bihar and senior executives of medium and large companies through tax efficient structuring of pay packages, assistance in compliance under tax laws and representation before tax authorities. We offer end-to-end solutions for the following Taxation Services We offer the most reliable Taxation Services, Tax Planning Services etc.at the most competitive price.

 

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In today’s world corporate as well as individuals are required to comply with a number of income tax compliance, which require expert knowledge and are mostly time-bound and technical in nature. Moreover,most of the income tax compliance nowadays are required to be completed online and require specialized knowledge. We provide Time-bound and quality services to our clients. Our span of Income Tax services covers all aspects of Indian Income Tax Laws. Our services help our clients to operate efficiently and meet out their tax liability.

 

ü   Tax Management and Advisory Services

ü   Calculation of Advance Taxes

ü   Filing of Returns of Income Tax, Wealth Tax, Tax Deducted at Source (TDS)

ü   Representation before Tax Authorities for Assessment, Appeals, Search & Seizure Cases

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BPO Services


Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, human resources (HR) or accounting, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace.


Our BPO services

Two categories BPO is often divided into are back office outsourcing, which includes internal business functions such as billing or purchasing, and front office outsourcing, which includes customer-related services such as marketing or tech support.

Back office outsourcing offers organizations services to help manage tasks like data entry, data management, surveys, payment processing, quality assurance and accounting support. Back office tasks are integral to a company's core business process and help keep business running smoothly.

Front office outsourcing services deal with customer interactions. Examples of front office tasks include phone conversations, email, fax and other forms of communication with customers. Front office outsourcing providers' service lists include:

Ø  Telemarketing

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GST Impact


Good and Service Tax is the largest Indirect tax reform in India which is going to impact the way business is carried out at pan India level. It’s going to replace almost all the existing Indirect tax or levies like Excise Duty, Service Tax, VAT, Entry Tax etc. Its impact will vary across the different kind of businesses.

Dual GST structure enhances the overall complexity which can be mitigated through a robust IT system. It’s imperative and high time for companies to gear up and assess the likely impact of GST on their kind of business.

Old age concepts like “Sale”, “Manufacturing”, “Stock Transfer” needs to be unlearned and new terms like “Destination”, “Consumption”, “Place of supply” to be learned.

Now, almost whole India will be one market, breaking the boundaries of erstwhile State specific indirect taxes.


Our scope of services under GST regime

Impact analysis

Our team of experts will understand your business and carry out an impact analysis covering all the importan taspects i.e. working capital requirement, logistic issues, job work vs.In-house, procurement, Maximum Retail Price.

Transitionsupport

For existing registered entities under various Indirect tax laws, there would be an automatic transition to GST regime . The transition process will require assessment of situation and positions of taxation liability under existing laws. We’ll work out the strategy for transition to GST and its likely impact on the closing balance of tax obligations and benefits.

Regular compliances

Once GST is made applicable and transition process is complete, our next role would be to support you in regular compliances under GST which includes but not limited to new registrations, amendments in existing registration, calculation of period tax liability, preparation and filing of tax return, tax assessment etc.





Rate classification for goods

ü Exempt

Food grains, Cereals, Milk, Jaggery, Common Salt……………………

ü GST @ 5%

Worn clothing, Fly ash, Fishing net and fishing hooks, Sulphur recovered in refining of crude………..

ü GST @ 12%

Condensed milk, Printing ink, Specified parts of sewing machine, Furniture wholly made of bamboo or cane, Diabetic food…………

ü GST @ 18%

Escalators, Fork lifts, lifting and handling equipment, Electrical apparatus for radio and television broadcasting, Chocolates, Rubber tubes and, miscellaneous articles of rubber, Slabs of marbles and granite, Detergents……..

ü GST @ 28%

Pan masala, Cigars……

ü GST @ 28% + Cess

Small cars(1% / 3% cess), Luxury cars(15% cess)




Rate classification for services


Only rates of select goods and services have been mentioned here

• GST rate on pearls, precious or semi-precious stones, diamonds (other than rough diamonds), precious metals (like gold and silver), imitation jewellery, coins – 3%

• GST rate on rough diamonds – 0.25%


Why RKA is the best choice for GST?

ü Extensive experience of handling Indirect Taxes on pan India level. There are many clients for whom we take care of tax compliances.

ü Strong team of energetic and experienced professionals

ü Best Indirect tax experts are part of our professional alliance network.

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