One Nation, One Tax GST

GST is one indirect Tax for the entire country. Which will make India one brought together normal market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

Need for GST

A cross-over is seen in the economy as services are used in the production and distribution of goods and likewise products are utilized in delivering services.

GST will function as an 'Across the board' tax as the different indirect taxes being collected by the middle and the state will be 'subsumed' or remembered for GST.

Current Tax structure

Currently, each state taxes goods that get across its boundaries at different rates, prompting numerous tax collection.

The prior model of discrete tax assessment on goods and services would require splitting of transaction esteem (costs paid for items) into worth of tax and services for tax collection.

Therefore, the assortment of taxation on commodities and the complexities in our current tax design will be dispensed with once GST becomes an integral factor.

A few advancements during the GST journey starting around 2017

 1. Subsuming of taxes: It was another experience of subsuming 17 various sorts of expenses under GST. Pre – GST, Trade and Industry needed to go through compliances under Central Excise, Service Tax and VAT and working together in various states included holding fast to various VAT laws, consistence through various entryways and offering an explanation to various specialists.

2. Formalization of the economy: More and more organizations moving in the proper economy is apparent from the critical expansion in the GST citizen base. Moving to the proper economy has acquired greater visibility and thus more freedoms for Trade and Industry.

3. State borders: The State borders errors and postponements have descended essentially. Because of various VAT laws in various states, between state exchanges were an aggravation for Trade and Industry. Cost and season of doing between state exchanges have descended essentially after the execution of E – waybill.

4. Rate rationalization: Major changes in the Tax paces of different things whereby 28% things pulled to 18%, 18% things pulled to 12% and 12% things pulled to 5%. Further different fundamental products were made tax exempt.

Book-keeping Benefits

 

Book-keeping is an activity concerned with the recording of financial data relating to business operations in a significant and orderly manner. It covers procedural aspects of accounting work and embraces record keeping function. Obviously, book-keeping procedures are governed by the end product, the financial statements. The  term ‘financial statements’ means Profit and Loss Account, Balance Sheet and cash flow statements including  Schedules and Notes forming part of Accounts.

The essential idea behind maintaining book-keeping records is to show correct position regarding each head of income and expenditure. A business may purchase goods on credit as well as in cash. When the goods are bought on credit, a record must be kept of the person to whom money is owed. The proprietor of the business may like to know, from time to time, what amount is due on credit purchase and to whom. If proper record is not maintained, it is not possible to get details of the transactions in regard to the income and expenses. At the end of the accounting period, the proprietor wants to know how much profit has been earned or loss has been incurred during the course of the period. For this lot of information is needed which can be gathered from a proper record of the transactions. Therefore, in book-keeping, the proper maintenance of books of account is indispensable for any business.

Objectives of Bookkeeping:

1. Complete Recording of Transactions – It is concerned with  complete and permanent record of all transactions in a systematic and logical manner to show its financial effect on the business.

2. Ascertainment of financial Effect on the Business – It is concerned with the combined effect of all the transactions made during the accounting period upon the financial position of the business as a whole.

3. Book-keeping serves as a permanent record of the monetary transactions of an enterprise

4. Business and it can be produced as an evidence, whenever and wherever required.

5. To know the profit or loss of the business during the financial year.

6. To know the total assets and liabilities of the enterprise.

7. To know what the businessman owes to others and what others owe to him.

8. Businessman comes to know the current year’s progress over previous year and compares its financial results with other business enterprise in similar line.

The importance of Book-keeping:

Benefits of Book-keeping

   Focus on Growth: They handle your non-revenue generating and repetitive tasks so you can focus on important stuff.

Financial Savings: The real value of outsourcing bookkeeping is that it reduces overall operating costs.

Bookkeeping Mistakes: Bookkeeping service provider have multiple cross-check process that helps to spot mistakes in accounts before they become costly.

Expert Advice: You can quickly get advice from experts about your business decisions like where to get a loan from, what will be the cost of the product, how to save on taxes etc.

Cash Flow Management: Bookkeeping services can solve businesses cash flow problems by providing advice like to make the use of the separate account for business transactions, have a credit card for business and stop cash transaction.

Financial Report: It helps you to generate financial reports on a regular basis. It will help you to keep track of your business earnings and spending accurately.

Technology: Every service provider has the latest technology and experience of working with the latest accounting software. You will get experts without any investment.

Reduce the Risk Factor: It reduces the risk of money stolen by trusted employees. So it minimizes the risk of internal fraud and can improve trust and compliance.

Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are being adopted by various government agencies and now is a statutory requirement in various legal applications.

Various company offers different certificates to help organization and individuals secure online transactions with legal validity as per the Indian IT Act, 2000.

Validity of the Certificate

Once you buy DSC it is valid for 2 or 3 years, after that you need to renew your DSC.

Who can take Digital Sign Certificate (DSC)?

There is no limitation on who could take certificates, people and organization from India and outside India can buy DSC

 

  Benefits of Digital Signature

1.     Authentication

2.     Reduced cost & timing

3.     Data integrity

4.     Authenticity of documents

Digital Signature Certificate

Digital signature certificates according to IVG guideline which is considered as the most secure and the safest of all certificates. It is mainly used in matters of high security and safety such as e-filing, online trading and e-commerce, where a huge amount of money or highly confidential information is involved.

Following are the main functions of certificates -

•  e-Tendering
•  Patent and Trademark e-filing
•  MCA e-filing
•  Income Tax e-filing
•  LLP registration
•  Customs e-filing
•  e-Procurement
•  e-Bidding
•  e-Auction
•  GST Application filing

Sign: Sign DSC is used for signing documents. The most popular usage of is signing the PDF file for Income Tax Returns, filing companies ROC returns, Provident Fund return filing.

 

Encrypt: Encrypt DSC can be used to encrypt a document, it is popularly used in the tender portal, to help companies encrypt the documents and upload. You could also use the certificate to encrypt and send classified information. Encrypt DSC is fit for e-commerce documents, legal documentation and sharing documents that are highly confidential and contains information that needs to be protected.

 

Sign & Encrypt: Sign & Encrypt DSC can be used for both signing and encrypting. It is convenient for users who need to authenticate and maintain the confidentiality of the information shared. Its usage includes filing government form and application.

Legal Entity Identifier (LEI)

 

Introduction and purpose of legal entity identifier

The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.

The LEI is designed to enable the identification and linking of parties to financial transactions to manage counterparty risk. Its goal is to help improve the measuring and monitoring of systemic risk and support more cost-effective compliance with regulatory reporting requirements.

Regulatory authority of LEI

The Global LEI System (GLEIS) has been set up by regulatory authorities [including G20 and the Financial Stability Board (FSB)] to address the global financial crisis. The online portals of the Financial Stability Board (FSB), Regulatory Oversight Committee and Global Legal Entity Identifier Foundation provide general information on the status of the global LEI system.

 

Why is Legal Entity Identifier required for organization?

The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction.

LEIL will assign LEIs to any legal identity including but not limited to all intermediary institutions, banks, mutual funds, partnership companies, trusts, holdings, special purpose vehicles, asset management companies and all other institutions being parties to financial transactions.

LEI will be assigned on application from the legal entity and after due validation of data.

 Renewal of the LEI Code:

An LEI Code is generally valid for one year. In order to continue to use the code, it must be renewed through an application form. This can be found on the same online portal; the only difference this time around is to select the option “Modify and Renewal” and not the “Register” option. Again, any changes to this part will also need the authorized person to do so. In the form, once the LEI Code is entered in, all the details appear automatically. Any modifications to be made shall be made. The “LEI Renewal” checkbox has to be checked right and then the same process of form completion, payment and document submission is followed. On successful submission of all the above, the LEI Code is renewed, and the confirmation of the same is received.

How does one obtain an LEI?

Document List: Log on the online portal https://www.ccilindia-lei.co.in/ and access the “Downloads” tab. The checklist for the documents and their specific formats necessary for submission are available here based on the legal structure of the entity.

Self-registration on the online portal: A person must be appointed as the authorised person to look over and carry out the process of obtaining the LEI Code. A person may be appointed as an authorised person by way of a resolution, power of attorney or voluntarily, as the case may be. It is only this authorised user that has the permission to create an account, providing his official email id and proceeding to fill up the online form. Authorised persons include:-

• Primary/Main user who submits the online application form. – Authorised User
• Name and email id of the authorised officials named in the online form.
• Secondary User – Name and email id of the secondary authorised officials named in the online form.

·   Submission of the documents: The applicant entity will have to upload all the necessary documents mentioned in the email. The total size of the uploaded documents should be 40MB. If the upload is unsuccessful, then the documents may be couriered to the following address:-

· Verification process: Once the documents are uploaded or sent physically, they will be verified by the LEIL along with the application form. If necessary, the LEIL may ask for additional documents as well. The applicant entity may also be directed to make changes in the application form online by the LEIL.

· Issue of LEI Code: The LEI code will be issued on the successful submission and verification of the form and the related documents. The LEI code will be sent in an email to the entity, and this code must be provided to the banks

Annual Information Statement (AIS)

 जगद्विपरिवर्तते (Jagat viparivartate) - the world is in constant revolution. In nutshell; Change is the only constant thing.

When Form 26AS was first launched by the Income Tax Department, it’s been used as a ready reference for filing of Income Tax Returns and verification of tax credits. Form 26AS is a consolidated annual tax statement that includes information on tax deducted/collected at source, advance tax, and self-assessment that is available on the Income-Tax website against a taxpayer’s PAN.

From FY 2020-21, The Income tax department taken one step ahead and brought out new Annual Information Statement (AIS) which includes additional information such as those related to interest, dividend, securities transactions, real estate transactions, mutual fund transactions and remittances from abroad along with detail information on many other transactions that are present available with the Income Tax department.

AIS introduced by Income Tax Department is a comprehensive statement containing details of all the financial transactions undertaken by person in a financial year, i.e., it contains the information that are specified under the Income-tax Act, 1961. So in summarised way taxpayer can get details of income earned from various sources such as salary, bonus, interest from savings account, recurring deposits, sale and purchase of equity shares, bonds, mutual funds etc. The statement also contains information related to TDS, TCS and any tax demand or refund.

Types of information shown in AIS:

 AIS Divided in two parts:

Objectives of AIS 

• Presenting complete information to the taxpayer with a facility to capture virtual response.
• Promote voluntary compliance and enable smooth prefilling of return 
• Deter non-compliance.

Feature of Annual Information Statement

Addition of New Information: AIS is an addition of Form 26AS and includes details upon interest, securities transaction, dividend, real estate transactions, mutual fund transactions etc.

Elimination of Information: The AIS removes duplicated information for generation of a simplified Tax Information Summary (TIS) for ease of filing of return

Data Analytics: AIS uses data analytics to populate PAN in non-PAN data for inclusion in AIS.

Feedback: Taxpayer will be able to submit virtual feedback on the information displayed in AIS and also download information in PDF, CSV file formats. Annual Information Statement Utility will enable taxpayer to view AIS and upload feedback in offline mode. AIS Mobile Application is also available that will enable taxpayer to view AIS and submit feedback on mobile.

Benefits of Payroll Outsourcing

Payroll Outsourcing means engaging an external firm to handle all employee related compliances including monthly salary, professional tax, Labour Laws, Withholding Tax etc. as applicable to that organization.

Payroll outsourcing includes

·       managing employee salaries,

·       managing withholding tax and compliances,

·       integrations with existing systems to fetch relevant payroll data,

·       leave and attendance,

·       payroll reports and much more.

Payroll management is highly regulated in Indian scenario and can be a complex, time-consuming, cumbersome task therefore many organisation look out for Payroll outsourcing service provider to manage end to end payroll for them.

Payroll Outsourcing helps in handling complexity, compliance oriented and meeting various Government regulations and it becomes reliable and flexible.

 

Benefits of Payroll Outsourcing:

• Time saving: Payroll processing inside your business is a time-consuming process. Keeping track of benefits, deductions, new hires and terminations, paid time off as well as federal and state regulation changes can be frustrating tasks. Each year significant labour hours are spent preparing payroll details and ensuring that they are sent out timely. Outsourcing payroll allows employers to concentrate on their core business and frees up the business owner, human resources or accounting personnel to work more on strategic tasks that could ultimately affect your bottom line.

• Reduce Costs: The direct costs of processing payroll can be greatly reduced by working with a payroll provider. Big businesses can afford to maintain robust payroll departments. However, Small/medium sized businesses, having an in-house payroll process is a money burner. If your business has fewer than 30 employees, there’s a very good chance that you can save money by outsourcing your payroll operations.

• Prioritizing core business: Payroll is unlikely to be a core function of your business. Because it is a non-core function, any time and resources that you devote to it, means less time you have to focus on revenue-generating activities. By placing an expert in control of your payroll processing, you can better use your time in areas more closely related to your core business or revenue centres, such as customer service, sales and marketing.  

• Regulatory Compliance: One of the most daunting tasks for small- to mid-sized businesses is complying with laws, regulations and mandatory rules. Businesses may need to have an in-depth understanding of various regulations to avoid running afoul of the law. This includes being on top of labour, tax, immigration, anti-discrimination and insurance laws.

Legal and compliance requirements relating to payroll are often complex. By outsourcing payroll to a trusted service provider, you can delegate this task to a company that is knowledgeable about local, regional and national laws and regulations. You can avoid penalties or unnecessary audits that are triggered by your non-compliance.

 

How to choose Payroll Service Provider:

• Core software and support features: You should get the most out of the payroll provider’s features.
• Pricing: Some payroll providers are intricate and expensive due to their niche or different business structure. Make sure you aren’t overpaying for something you won’t use.
• Integration: Does the payroll provider work with your automated time sheets and other data aggregation methods?
• Tax Reminders and Compliance: Your payroll provider should make it easy for you to file and pay all payroll taxes.
• Customer Service: Payroll errors, changes in tax laws, or communication with outside entities for audits are all part of running payroll. A good payroll provider will provide you with customer service to help you get through these or any other issues you may have.

RoDTEP Scheme

The scheme for zero rating of exports will boost our exports & competitiveness in the global markets .The rates of RoDTEP will cover 8555 tariff lines.

It could be noticed that Government is investigating every possibility to help homegrown industry and make it more serious in the global business sectors. Product driven ventures are being transformed and acquainted with better instruments to expand their intensity, support sends out, create work and add to the general economy. This will go far in accomplishing our vision of building an Aatmanirbhar Bharat.

Remission of Duties and Taxes on Exported Products (RoDTEP) is one such reform, based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.

Objectives

Background

In 2018, the United States tested export incentive scheme carried out by India before Dispute Settlement Body of the Word Trade Organization (WTO). These scheme incorporates MEIS, were found violative of the WTO rules, and India was given a half year to pull out these rebellious appropriation scheme.

While testing the above request, India superseded MEIS with the new    RoDTEP, which meets the WTO rules.

Product and Services Export Incentive Schemes (MEIS and SEIS) were rejected as they were observed to be impermissible under the WTO standards.

Eligibility to obtain benefits of the RoDTEP Scheme

• All sectors, including the textiles sector, may enjoy the benefits of the RoDTEP Scheme. Producer exporters and shipper exporters (merchants) are both qualified for the advantages of this scheme.
• RoDTEP looks to offset the expense effect of at present un-discounted obligations and assessments.
• The refunds range from 0.5% to 4.3% of the FOB (Freight On Board) worth of outbound transfers. Re-traded items are not qualified under this plan. To be qualified to profit the advantages of this scheme, the traded items need to have the nation of beginning as India.
• Extraordinary Economic Zone Units and Export Oriented Units are likewise qualified to guarantee the advantages under this scheme.
• Where goods have been exported via courier through e-commerce platforms, RoDTEP scheme applies to them as well.        

    Industry

Ø Business arranged (work concentrated) areas like marine, farming, cowhide, pearls and adornments are covered under the scheme.

Ø  Steel, pharma and synthetic substances businesses have not been incorporated under the plan on the grounds that their products have done well without encouragement.

Products focused under the scheme

  Sort of charges which will be discounted

 

 The reimbursement of taxes such as

Ø Obligation on power utilized in assembling

Ø VAT on fuel utilized in transportation

Ø Focal extract obligation on fuel utilized in transportation

Ø Mandy charge and

Ø Stamp obligation

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