Services

Goods and service tax

The biggest and historic tax reform hit India on the early morning of 1^st July with a lot of expectations and confusions at the Central Hall of Parliament where both houses were present. Amidst all, it has paved root to the most emerging tax in India. The most awaited GST, simplified the indirect tax regime to a crisp and clean manner by eliminating the difference between ‘goods and service’ and bringing it under the umbrella of ‘supply’. It has opened wide range of opportunities to the professionals of financial and information technology services sector

GST has eliminated cascading effects due to multiple levies by the Central and State Governments. It has subsumed erstwhile taxes like State VAT, Service Tax, Central Excise Duty, Additional Customs Duty and Octroi. It is levied on sale, purchase, transfer, barter, lease or import of goods and/or services.

Several malpractices especially related to input tax credit will be eliminated in GST. The dealers cannot escape from up-to-date book keeping requirements as it is the only way to facilitate timely filing of returns. In addition to these, the use of information technology is at its peak that it demands transparency from the businessmen.

In the past people refrained from indirect tax registration because they do not want themselves under the surveillance of tax authorities. But the growing trend is to take registration as it adds value to the organisation and many industrial buyers would like to deal with registered dealers.

Hence you can approach us for these services relation to GST;

Income tax

Income Tax is a direct tax levied by the Central Government on the income of a person and it extends to Jammu and Kashmir. Unlike indirect tax, income tax is not regressive. As it is not regressive, only those individuals who are in the higher income limits are taxed and thus promote economic equality in a sense.

For an entrepreneur, one of his important decisions will be the type of business which he wants to invest. The obvious dilemma is sometimes answered in the Income Tax Act by way of tax incentives for certain businesses. There are tax holydays for many persons for setting up business of a specialized nature which is already identified in the Act by the government. Making use of these packages will be an intelligent option for a businessman who is looking for tax planning. Furthermore there are composition schemes which make the setting up of small and medium businesses, an attractive package.

It is widely opined that the income tax rates in India is high. This fact needs to be agreed. It can be one of the major reasons of unaccounted money in the country and was evident during the demonetization period. In future there will be substantial reduction in the rates of income tax and increase in the basic exemption limit which will motivate the disclosure of true and correct income earned by the tax payer.

The interest and penalties in the Income Tax Act are very high and sometimes penalties can go up to 100% of the tax evaded at the discretion of the assessing officer. For most persons, payment of tax is something they cannot digest. But there are many ways through which a tax payer can reduce the tax burden. Therefore it necessitates the consultation of a professional who can help him through it. The various provisions of the law are something which a layman is not familiar with. Further it needs to be understood that there is always room for tax planning rather than tax avoidance which can be very harmful to the individual if found guilty.

Electronic mode of filing returns was the latest addition which enabled the easy processing of returns by the department. The tax payers need not produce TDS certificates or challan as his account will show the exact tax credit. Hence it requires timely filing of TDS returns by the deductor of income tax. At first electronic filing was made as an option. Later it was made compulsory for most tax payers and as a result of that, now tax payers cannot file the returns by themselves as electronic filing needs the use of computer and use of information technology.

You can approach us the for the following services related to Income Tax;

Company related matters

Company is one of the most trusted forms of businesses as there is a mountain of compliance burden. Companies are regulated by Ministry of Corporate Affairs (MCA).The latest addition to company form of organization is ‘one person company’ which means that one person himself can form a company which may be a mouthwatering feature for entrepreneurs who needs to work alone but still needs to do an authentic business .It offers protection to the funds of the stakeholders unlike any other form of organizations.

Formation of a company is something which needs careful legal considerations. Many people form a company without understanding the procedures required by the Companies Act. For a layman the term ‘company’ is a synonym for business. But all businesses cannot be called as a company in the technical sense. A special feature of a company is its separate legal entity, which is acquired through incorporation. Thereafter it is clothed with a legal personality which is known as the ‘corporate veil’. Thus members can contract with the company and company can contract with the members. Likewise a member can sue the company and company can sue the member too. The company remains liable for the all the debts and not its members which means that their liability is limited to the extent of funds invested by them into it.

It may be stifling for a director to know that he cannot withdraw money from company as it is possible in a partnership or proprietorship forms of businesses. On the other hand providing loans to the company by the director is not restricted. A basic understanding of these laws will be essential for the proper conduct of the day to day affairs of the company. Hence the service of an experienced professional is the only solution in front of the businessman.

You can approach us for the following services related to company.

Labour Related Matters

Growing understanding of human values and relations has paved route to various kinds of labour laws. In these times of capitalistic order of countries, the Government can protect the rights of the workers only through these kinds of laws. Further various corporates have understood that for getting the maximum output from an employee, he must be provided with adequate salary and satisfactory working environment. Labour laws that a business man needs to comply in India may are;

1. Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF)

This act applies to the following entities namely;

Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
Employing 20 or more persons.

Cinema Theatres employing 5 or more persons.

2. Employees' State Insurance Act, 1948

According to the notification issued by the appropriate Government (Central/State) concerned under Section 1(5) of the Act, the following establishments employing 10 or more persons attracts ESI coverage.

Shops
Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’.
Cinemas including preview theatres;
Road Motor Transport Establishments;
Newspaper establishments.(that is not covered as factory under Sec.2(12));
Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centres, pathological labs).

3. Labour Welfare Fund

Labour welfare fund is applicable to the shops and establishments in the state of Kerala. A certain sum needs to be deposited by the employee and employer each month and employee has various benefits as prescribed.

A businessman is always motivated towards profit. But without an efficient workforce, no business can cherish. If there is contribution to these funds, there is always a room for reputation as an employer.

Accounting and other financial services

Accounting

Accounting is essential for any business or service. It help the businessmen to assess profitability and plan for the future. Many businessmen, who have ignored accounting, subsequently realised its importance. Further it is imperative for determining taxation liability. Outsourcing of accounting is a growing trend among the businesses which cannot employ persons for it. Following are the advantages of outsourcing the accounting function from the point of view of businessmen.

Expertise of the professional accountant can be used.
Organisation need not bother about key employees in the accounting functions, leaving the position.
Management and storage of accounting data is trusted in the hands of the professionals.
Management can save the time and concentrate on the core area of business activities.
Lesser Requirement of computer systems and reduced cost.

Project Reports

Finance is the lifeblood of every business. Without adequate finance no business can survive. Amongst all source of finance, bank loan is the mostly depended source for finance. Availing a bank loan is not an easy task. Only a qualified and experienced professional understands the adequacy of ratios to be maintained to prepare a healthy balance sheet. The bank manager relies on these project reports in order to assess the business operations and to issue and renew loans. A project report contains of;

Nature of business, Vision, Mission and objectives.
Profitability Statements
Balance Sheet
Repayment Schedule
Breakeven Point
Other Analysis

Bank Loan Processing

An individual who needs to avail a bank loan and is unfamiliar about its requirements can contact us. We will do all the processing related to the bank loan on your behalf.

Licenses and other services

Corporation/Municipality/Panchayat License.

It is the license issued by the local authorities allowing a business to start its operations.

Pollution Control Board License

Even though many businesses do not have any pollution, it requires the license from Pollution Control Board. Many businesses are functioning without this license but if found later it can lead to severe penalties and proceedings.

Digital Signature-Class I/Class II/ Class III/ DGFT-eMudhra

Days are gone where businessman signs all his papers with his pen. Digital Signature allows the authentication of an electronic document with a tool called digital signature. It has been an essential requirement for Tax Return Filing, MCA(Ministry of Corporate Affairs) related filing and for other operations. All classes of digital signatures are supplied by us with due care.

E-Tendering

Tenders by the government which are carried through government website are processed for and on behalf of the contractors byus.

IE Code

IE code is an essential requirement for carrying on Import and Export business.

Government Liaising

Any kind of hindrances in government procedures are handled by us.

Passport Services

Essential passport services like new passport application, re-issue of passport in circumstances like change in existing details, expiry, exhaustion of pages, damage and loss of passport are carried on by us

AUDITS

1. Tax Audit

As per section 44AB, following persons are compulsorily required to get their accounts audited;

A person carrying on business, if his sales exceeds` 1 crore.
A person carrying on profession, if his gross receipts in profession for the previous year exceed ` 50 lakhs.
Eligible businesses which opts out of presumptive taxation scheme of section 44AD and declare the profits to be lower than the limits specified in the Act and the gross total income exceeds the limit which is not chargeable to tax.
Eligible Professionals who do not opt for presumptive taxation scheme of section 44ADA and declare profit from such profession as lower than the profits specified in the Act and the gross total income exceeds the limit which is not chargeable to tax.
Businesses of plying, hiring or leasing goods carriages which are eligible for opting presumptive taxation scheme u/s 44AE but declare the profit as lower than the profits specified in the Act.

2. Other Statutory Audits

Statutory audit means the audit necessitated by a certain statute which an organization obliged to comply. For example Companies are liable for audit compulsorily under the Companies Act, 2013 which is replaced by the erstwhile Companies Act, 1956. Further the GST Act mandates the audit of dealers whose supply exceeds certain limits.

3. Internal Audit

Concurrent audit is similar to internal audit but differs in its scope. In internal audit test checks are done to find out discrepancies but in concurrent audit, all financial transactions are verified in a contemporaneous basis. Hence it is inevitable for those firms which are carrying out voluminous transactions and also when transactions are irrevocable if it is not detected as and when they are occurred.

4. Concurrent Audit

5. Stock Audit

Stock audit has the following advantages to render;

It finds out deviances in stock between the book and physical stock.
It finds out nonmoving and obsolete stock.
It identifies the gaps in current inventory management processes

Audit doesn’t portray a perfect view of the entity. However it gives a true and fair view of the affairs of an organization. It enriches the value of the organization which makes it inevitable for any management which rides on the principle of ‘Management by Exception’.