Download this "Tax Alert" penned down by me on #TCS on Sale of goods u/s 206(1H) - https://rb.gy/teozs0
and give your feedback. I have tried to address the amendment with a different approach which will help decision makers!
This document provides an overview of factoring and forfaiting. It defines factoring as a financial service where a factor (financial institution) purchases a firm's accounts receivables and takes responsibility for credit control, sales accounting, and debt collection. The key benefits for the firm are improved cash flow from immediate payment of receivables and advisory services from the factor. The document outlines the factoring process, types of factoring arrangements, and fees charged by factors.
Journalising- easy way to learn journal entries for beginners in Accounting S...Sarat Kumar Budumuru
June 1, 2011: Started business with cash Rs. 45,000. Cash account debited and capital account credited.
June 3, 2011: Sold goods for cash Rs. 8,500 and purchased goods for Rs. 7,000. Cash and sales accounts debited and credited respectively for sale. Purchases account debited and personal account credited for purchase.
June 5, 2011: Withdrew cash from bank for personal and business use. Drawings and cash accounts debited and bank account credited in a compound journal entry.
The document discusses various accounting principles and rules for journalizing transactions like expenses, gains, cash/credit transactions, opening entries, discounts, purchases/sales of investments and
Accounts payable is a liability account that represents amounts a company owes to its vendors for goods and services purchased on credit. When a company receives an invoice from a vendor, it records the amount in the accounts payable account as a liability. It will later pay this amount by debiting accounts payable and crediting cash. Companies use a three-way match process to verify vendor invoices by comparing the invoice to the purchase order and receiving report before recording the liability in accounts payable. Maintaining an accurate accounts payable process is important for a company's financial reporting and cash management.
Accounting Basics provides an overview of key accounting concepts for first year MBA students. It defines accounting as identifying, measuring, and communicating economic information to allow for informed judgment and decision making. The document discusses the accounting equation, which shows that assets must equal liabilities plus owner's equity. It also explains debits and credits, the different types of accounts, and the steps for recording transactions in journals and ledgers. Trial balances and final accounts such as trading, profit and loss, and balance sheets are introduced to assess business performance and financial position.
Getting started with tds in tally.erp 9 | Tally Downloads | Tally Support | T...stannventures.Pvt.Ltd
For more information about this PDF file. Please visit http://www.tallyspot.com
Ideal spot for a obtain Tally 9 ERP and download free Tally.ERP 9 versions. Up-grade Tally
Accounting Software & .NET Subscription, Advanced Web Interface Accounting Software for Asia & Most
ERP Software Products. Import data from tally & Data Connectivity to Tally.ERP 9 Import.
The document introduces key accounting concepts: the accounting entity assumes transactions only related to the business are recorded; the accounting period divides a business's life into fixed time periods like months or years; the monetary convention uses money as the unit of measurement; the going concern assumption considers the business a continuous operation; and the historical cost principle records assets at their original acquisition cost. It then provides examples of basic bookkeeping, recording expenses in categories and preparing a basic income statement to check if records are accurate and money is being managed properly. Finally, it outlines the basic accounting cycle of collecting source documents, recording journal entries, posting to ledgers, preparing a trial balance, making adjustments, and producing financial reports.
Accounts payable refers to money a company owes to vendors for goods and services purchased on credit. It is presented as a current liability on the balance sheet and represents future cash outflows. Maintaining an effective accounts payable process and tracking outstanding balances is important for timely payments to avoid penalties from vendors. When goods are received, inventory is debited and accounts payable is credited, and when payment is made accounts payable is debited and cash is credited.
This document provides an overview of factoring and forfaiting. It defines factoring as a financial service where a factor (financial institution) purchases a firm's accounts receivables and takes responsibility for credit control, sales accounting, and debt collection. The key benefits for the firm are improved cash flow from immediate payment of receivables and advisory services from the factor. The document outlines the factoring process, types of factoring arrangements, and fees charged by factors.
Journalising- easy way to learn journal entries for beginners in Accounting S...Sarat Kumar Budumuru
June 1, 2011: Started business with cash Rs. 45,000. Cash account debited and capital account credited.
June 3, 2011: Sold goods for cash Rs. 8,500 and purchased goods for Rs. 7,000. Cash and sales accounts debited and credited respectively for sale. Purchases account debited and personal account credited for purchase.
June 5, 2011: Withdrew cash from bank for personal and business use. Drawings and cash accounts debited and bank account credited in a compound journal entry.
The document discusses various accounting principles and rules for journalizing transactions like expenses, gains, cash/credit transactions, opening entries, discounts, purchases/sales of investments and
Accounts payable is a liability account that represents amounts a company owes to its vendors for goods and services purchased on credit. When a company receives an invoice from a vendor, it records the amount in the accounts payable account as a liability. It will later pay this amount by debiting accounts payable and crediting cash. Companies use a three-way match process to verify vendor invoices by comparing the invoice to the purchase order and receiving report before recording the liability in accounts payable. Maintaining an accurate accounts payable process is important for a company's financial reporting and cash management.
Accounting Basics provides an overview of key accounting concepts for first year MBA students. It defines accounting as identifying, measuring, and communicating economic information to allow for informed judgment and decision making. The document discusses the accounting equation, which shows that assets must equal liabilities plus owner's equity. It also explains debits and credits, the different types of accounts, and the steps for recording transactions in journals and ledgers. Trial balances and final accounts such as trading, profit and loss, and balance sheets are introduced to assess business performance and financial position.
Getting started with tds in tally.erp 9 | Tally Downloads | Tally Support | T...stannventures.Pvt.Ltd
For more information about this PDF file. Please visit http://www.tallyspot.com
Ideal spot for a obtain Tally 9 ERP and download free Tally.ERP 9 versions. Up-grade Tally
Accounting Software & .NET Subscription, Advanced Web Interface Accounting Software for Asia & Most
ERP Software Products. Import data from tally & Data Connectivity to Tally.ERP 9 Import.
The document introduces key accounting concepts: the accounting entity assumes transactions only related to the business are recorded; the accounting period divides a business's life into fixed time periods like months or years; the monetary convention uses money as the unit of measurement; the going concern assumption considers the business a continuous operation; and the historical cost principle records assets at their original acquisition cost. It then provides examples of basic bookkeeping, recording expenses in categories and preparing a basic income statement to check if records are accurate and money is being managed properly. Finally, it outlines the basic accounting cycle of collecting source documents, recording journal entries, posting to ledgers, preparing a trial balance, making adjustments, and producing financial reports.
Accounts payable refers to money a company owes to vendors for goods and services purchased on credit. It is presented as a current liability on the balance sheet and represents future cash outflows. Maintaining an effective accounts payable process and tracking outstanding balances is important for timely payments to avoid penalties from vendors. When goods are received, inventory is debited and accounts payable is credited, and when payment is made accounts payable is debited and cash is credited.
How to take control of your startup finance Quicko.com
There were 3100+ startups in India until the start of 2015 and this number will grow up to 11,500+ by the end of 2020 as per the recent stats published by NASSCOMM. With these numbers, India is ranked as 4th largest startup location globally. With these staggering numbers, Young aspirants would definitely be inclined to know more about do’s and don’t of a startup. If your ultimate goal is to own your business and if you are ready to take the first big step towards pursuing your dream of becoming an entrepreneur, here are some of the things you must understand before you go about it.
The document defines a chart of accounts as a listing of account names used to record transactions in a company's general ledger. It then outlines the main account categories in a chart of accounts - assets, liabilities, equity, revenue, and expenses. Assets are divided into current assets, meant to be used within a year, and non-current/fixed assets. Liabilities are separated into current, due within a year, and non-current/long-term. Revenue represents money received from sales and services, while expenses are costs to generate that revenue.
Accounting for Managers/Management Accounting (Unit-2) by Dr. Abhay Singh Cha...Dr. Abhay Singh Chauhan
This document discusses financial statements and the funds flow statement. It defines key terms like financial statements, current and non-current assets and liabilities, and working capital. It explains that a funds flow statement tracks changes in working capital from period to period. Sources of funds include internal sources like net profit and depreciation, as well as external sources like loans. Uses of funds include purchases of fixed assets, dividend payments, and debt repayments. The funds flow statement is prepared by adjusting net profit for non-cash items, tracking sources and uses of funds, and preparing a schedule showing changes in working capital accounts from one period to the next.
The basic of accounting is the part of my book "The system of accounting" volume III enlightened on payment and receipt made by cash and accrual as well as cash flow and fund flow concept in accounting.
1) The document discusses the various books used in accounting such as books of original entry like purchases journal, sales journal, cash book, and general journal. It also discusses books of final entry like the ledger.
2) It explains key accounting concepts like capital and revenue expenditures, adjustments, trial balance, and control accounts.
3) Partnership accounting is covered including the key accounts prepared like trading account, profit and loss account, current accounts and capital accounts.
Dear Patron
Here we are with the Twenty Sixth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
S.P.Nagrath & Co.
Ms 04 accounting and finance for managers (1)smumbahelp
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
This document discusses accounting standards and financial reporting. It begins with an introduction and overview of why financial reports are prepared according to standards. It then discusses the types of standards and frameworks that exist, including IFRS, AS (Accounting Standards in India), and US GAAP. It provides information on the standard setting bodies like IASB and FASB. It discusses the history and development of standards in India and other countries. It also addresses current requirements in India for adoption of Ind AS standards and compliance. The document aims to increase awareness of accounting standards and financial reporting requirements.
Ind AS - 101 "First Time Adoption of IND AS" OverviewAdmin SBS
Contents:
1. Applicability
2. Definitions
3. Opening Ind AS Balance Sheet
4. Retrospective Application of Ind AS
5. Exemption from Retrospective Application of Ind AS
Bookkeeping means systematic recording of day-to-day activities such as financial transactions and expense accrual for a business. The company needs to track such details for making well operational decisions.
The document summarizes several tax developments in Singapore in 2017 that businesses need to be aware of:
1. A new related party transactions reporting requirement will take effect from 2018, requiring companies to report related party transactions over S$15 million.
2. A new e-Tax guide outlines that customer accounting for certain goods will be implemented in 2019, shifting output tax reporting from suppliers to customers for transactions over S$10,000.
3. Several changes were made to transfer pricing guidelines to better align with international standards around value creation and documentation requirements.
The document summarizes the key aspects of India's transition to Indian Accounting Standards (Ind AS) converged with International Financial Reporting Standards (IFRS). It discusses that India committed to convergence with IFRS at the G20 summit in 2009. The Ministry of Corporate Affairs then issued a roadmap for adoption of Ind AS beginning 2011, though implementation was suspended due to unresolved issues. In 2014, the Finance Minister announced adoption of Ind AS. The MCA subsequently notified the transition dates and standards to be applied in phases beginning 2016.
This document provides an introduction to accounting, including definitions and objectives of bookkeeping and accounting. It discusses the key differences between bookkeeping and accounting, and covers topics like the double-entry accounting system, types of accounts, and branches of accounting. The document is the first lesson in an accounting course, aiming to explain the basic concepts and terminology used in accounting.
Material for PGPSE participants of AFTERSCHOOOL CENTRE FOR SOCIAL ENTREPRENEURSHIP. PGPSE is an entrepreneurship oriented programme, open for all, free for all.
This software allows users to manage invoices, payments, purchase orders, inventory, customers, vendors, and accounts. It includes features to create and track inventory items, customers, vendors, purchase orders, invoices, payments, and financial reports. The administrator can control user permissions and access within the software.
Accounting involves recording, classifying, and summarizing financial transactions, and communicating this information is essential for business success. It is defined as recording transactions and events in monetary terms, classifying them, and interpreting the results. The fundamental accounting concepts and conventions provide a standardized framework for preparing and understanding financial statements.
The accounting cycle document describes the key steps in the accounting process. It involves recording transactions in daybooks, posting to ledgers, extracting a trial balance, and making adjustments. The main steps are:
1) Recording transactions in daybooks according to the type of transaction
2) Posting to the sales, purchases, and general ledgers
3) Extracting a trial balance to check the double entry system
4) Making closing entries and adjustments at the fiscal year end
To set up vouchers, you must define number series, assign general ledger and bank accounts, and specify source codes for different voucher types. This involves setting up number series, accounts, and source codes in various setup windows like Number Series, Company Information, Source Code Setup, and General Ledger Setup. You can then create vouchers like contra vouchers, cash payment vouchers, and cash receipt vouchers by filling details on journal lines and posting.
- Tax collection at source (TCS) under section 206C(1H) applies to sellers of goods whose annual turnover exceeds Rs. 10 crore. They must collect tax at 0.075% from buyers if total sale consideration exceeds Rs. 50 lakhs in a year.
- TCS is applicable on receipt of payment for sale of goods and is collected on the total sale value including GST. Amounts received before October 1, 2020 are counted towards the Rs. 50 lakhs threshold for the year.
- Sellers have the option but are not required to show TCS amount separately in invoices. Collecting and depositing TCS on receipt of payment is sufficient to comply with the law
Sceheme of Levy of MAT & Relevant Case lawsRam Kumar
The document provides an overview of Minimum Alternate Tax (MAT) under Section 115JB of the Indian Income Tax Act, including:
- MAT was introduced to tax companies that report large profits but pay little tax using deductions and exemptions.
- MAT is the higher of tax calculated under normal tax provisions or 18.5% of book profits (profits reported in financial statements).
- Book profits are adjusted by adding back deductions claimed and removing certain incomes to calculate MAT payable.
- Any MAT paid can be carried forward as a tax credit for future years when normal tax exceeds MAT payable.
How to take control of your startup finance Quicko.com
There were 3100+ startups in India until the start of 2015 and this number will grow up to 11,500+ by the end of 2020 as per the recent stats published by NASSCOMM. With these numbers, India is ranked as 4th largest startup location globally. With these staggering numbers, Young aspirants would definitely be inclined to know more about do’s and don’t of a startup. If your ultimate goal is to own your business and if you are ready to take the first big step towards pursuing your dream of becoming an entrepreneur, here are some of the things you must understand before you go about it.
The document defines a chart of accounts as a listing of account names used to record transactions in a company's general ledger. It then outlines the main account categories in a chart of accounts - assets, liabilities, equity, revenue, and expenses. Assets are divided into current assets, meant to be used within a year, and non-current/fixed assets. Liabilities are separated into current, due within a year, and non-current/long-term. Revenue represents money received from sales and services, while expenses are costs to generate that revenue.
Accounting for Managers/Management Accounting (Unit-2) by Dr. Abhay Singh Cha...Dr. Abhay Singh Chauhan
This document discusses financial statements and the funds flow statement. It defines key terms like financial statements, current and non-current assets and liabilities, and working capital. It explains that a funds flow statement tracks changes in working capital from period to period. Sources of funds include internal sources like net profit and depreciation, as well as external sources like loans. Uses of funds include purchases of fixed assets, dividend payments, and debt repayments. The funds flow statement is prepared by adjusting net profit for non-cash items, tracking sources and uses of funds, and preparing a schedule showing changes in working capital accounts from one period to the next.
The basic of accounting is the part of my book "The system of accounting" volume III enlightened on payment and receipt made by cash and accrual as well as cash flow and fund flow concept in accounting.
1) The document discusses the various books used in accounting such as books of original entry like purchases journal, sales journal, cash book, and general journal. It also discusses books of final entry like the ledger.
2) It explains key accounting concepts like capital and revenue expenditures, adjustments, trial balance, and control accounts.
3) Partnership accounting is covered including the key accounts prepared like trading account, profit and loss account, current accounts and capital accounts.
Dear Patron
Here we are with the Twenty Sixth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
S.P.Nagrath & Co.
Ms 04 accounting and finance for managers (1)smumbahelp
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
This document discusses accounting standards and financial reporting. It begins with an introduction and overview of why financial reports are prepared according to standards. It then discusses the types of standards and frameworks that exist, including IFRS, AS (Accounting Standards in India), and US GAAP. It provides information on the standard setting bodies like IASB and FASB. It discusses the history and development of standards in India and other countries. It also addresses current requirements in India for adoption of Ind AS standards and compliance. The document aims to increase awareness of accounting standards and financial reporting requirements.
Ind AS - 101 "First Time Adoption of IND AS" OverviewAdmin SBS
Contents:
1. Applicability
2. Definitions
3. Opening Ind AS Balance Sheet
4. Retrospective Application of Ind AS
5. Exemption from Retrospective Application of Ind AS
Bookkeeping means systematic recording of day-to-day activities such as financial transactions and expense accrual for a business. The company needs to track such details for making well operational decisions.
The document summarizes several tax developments in Singapore in 2017 that businesses need to be aware of:
1. A new related party transactions reporting requirement will take effect from 2018, requiring companies to report related party transactions over S$15 million.
2. A new e-Tax guide outlines that customer accounting for certain goods will be implemented in 2019, shifting output tax reporting from suppliers to customers for transactions over S$10,000.
3. Several changes were made to transfer pricing guidelines to better align with international standards around value creation and documentation requirements.
The document summarizes the key aspects of India's transition to Indian Accounting Standards (Ind AS) converged with International Financial Reporting Standards (IFRS). It discusses that India committed to convergence with IFRS at the G20 summit in 2009. The Ministry of Corporate Affairs then issued a roadmap for adoption of Ind AS beginning 2011, though implementation was suspended due to unresolved issues. In 2014, the Finance Minister announced adoption of Ind AS. The MCA subsequently notified the transition dates and standards to be applied in phases beginning 2016.
This document provides an introduction to accounting, including definitions and objectives of bookkeeping and accounting. It discusses the key differences between bookkeeping and accounting, and covers topics like the double-entry accounting system, types of accounts, and branches of accounting. The document is the first lesson in an accounting course, aiming to explain the basic concepts and terminology used in accounting.
Material for PGPSE participants of AFTERSCHOOOL CENTRE FOR SOCIAL ENTREPRENEURSHIP. PGPSE is an entrepreneurship oriented programme, open for all, free for all.
This software allows users to manage invoices, payments, purchase orders, inventory, customers, vendors, and accounts. It includes features to create and track inventory items, customers, vendors, purchase orders, invoices, payments, and financial reports. The administrator can control user permissions and access within the software.
Accounting involves recording, classifying, and summarizing financial transactions, and communicating this information is essential for business success. It is defined as recording transactions and events in monetary terms, classifying them, and interpreting the results. The fundamental accounting concepts and conventions provide a standardized framework for preparing and understanding financial statements.
The accounting cycle document describes the key steps in the accounting process. It involves recording transactions in daybooks, posting to ledgers, extracting a trial balance, and making adjustments. The main steps are:
1) Recording transactions in daybooks according to the type of transaction
2) Posting to the sales, purchases, and general ledgers
3) Extracting a trial balance to check the double entry system
4) Making closing entries and adjustments at the fiscal year end
To set up vouchers, you must define number series, assign general ledger and bank accounts, and specify source codes for different voucher types. This involves setting up number series, accounts, and source codes in various setup windows like Number Series, Company Information, Source Code Setup, and General Ledger Setup. You can then create vouchers like contra vouchers, cash payment vouchers, and cash receipt vouchers by filling details on journal lines and posting.
- Tax collection at source (TCS) under section 206C(1H) applies to sellers of goods whose annual turnover exceeds Rs. 10 crore. They must collect tax at 0.075% from buyers if total sale consideration exceeds Rs. 50 lakhs in a year.
- TCS is applicable on receipt of payment for sale of goods and is collected on the total sale value including GST. Amounts received before October 1, 2020 are counted towards the Rs. 50 lakhs threshold for the year.
- Sellers have the option but are not required to show TCS amount separately in invoices. Collecting and depositing TCS on receipt of payment is sufficient to comply with the law
Sceheme of Levy of MAT & Relevant Case lawsRam Kumar
The document provides an overview of Minimum Alternate Tax (MAT) under Section 115JB of the Indian Income Tax Act, including:
- MAT was introduced to tax companies that report large profits but pay little tax using deductions and exemptions.
- MAT is the higher of tax calculated under normal tax provisions or 18.5% of book profits (profits reported in financial statements).
- Book profits are adjusted by adding back deductions claimed and removing certain incomes to calculate MAT payable.
- Any MAT paid can be carried forward as a tax credit for future years when normal tax exceeds MAT payable.
The document discusses recent amendments to TDS and TCS provisions in India. Key points include:
- TDS is now applicable on salary of employees of non-resident employers located outside India.
- TDS thresholds on interest, dividends, director's fees, and payments to non-residents have been lowered or removed.
- New TDS provisions have been introduced for e-commerce operators, cash withdrawals, and purchase of goods.
- Non-deduction or late deposit of TDS can lead to disallowance of related expenses.
- Comparative analysis of new TDS on purchase of goods (194Q) and TCS on sale of goods (206C) provisions
The document provides guidance on key actions companies need to take to prepare for GST implementation on July 1st, 2017. It outlines steps to obtain GST registration details from customers and suppliers to ensure seamless input tax credit flow. Companies must circulate product lists with HSN codes to customers and fix their own HSN and SAC codes. They are advised to close June 2017 sales by the 25th and ensure all stock is delivered by the 28th-29th to allow stockists to claim input tax credit. Companies should also reconcile any inventory or purchase mismatches by the 28th.
Pre Budget Memorandum 2024-25-Tax Base, Avoidance, Litigations.pptxtaxguruedu
The Pre Budget Memorandum for Union Budget 2024-25 lays out a strategic roadmap for enhancing India’s taxation framework. Addressing critical areas such as tax base expansion, avoidance mitigation, litigation reduction, and Direct Tax Laws rationalization, the memorandum seeks to shape a tax ecosystem that is responsive, fair, and conducive to economic growth.
TransPrice Times 16th - 31st March 2017Akshay KENKRE
Dear Members,
We are pleased to present TransPrice Times for the second fortnight of March 2017.
This periodical covers the important amendments made to Finance Bill 2017, which has now received the Presidential assent. In other recent updates, this issue covers the circular on Income Computation and Disclosure Standards (ICDS) released by CBDT, while the Tax Courts have delivered important rulings addressing key transfer pricing issues related to recharacterization of share application, depreciation adjustment.
We would be happy to know your suggestions. You can write to us at akshaykenkre@transprice.in
Thank You and Happy Reading!!
This document provides a summary and analysis of recommendations from the 28th GST Council meeting and subsequent notifications. Key points include:
1) A simplified return process was recommended involving a single monthly return filing with invoices uploaded continuously by buyers and sellers.
2) Taxpayers with up to Rs. 5 crore turnover will have the option to file quarterly returns with monthly tax payments. Simplified 'Sahaj' and 'Sugam' returns are introduced.
3) Several goods saw rationalization of tax rates in various notifications. Inverted duty refunds will now be allowed for textile sectors.
4) The rate of tax on canteen services provided in factories, schools, etc.
This document provides an analysis of Section 206C(1H) of the Income Tax Act regarding tax collection at source (TCS) provisions introduced by the Finance Act of 2020. Key points include:
1) TCS of 0.1% is required to be collected by sellers receiving over Rs. 50 lakh in sales annually from buyers, excluding exports.
2) The applicability date was deferred to October 1, 2020 from April 1, 2020 due to COVID-19.
3) The Central Board of Direct Taxes can issue guidelines to address any difficulties in implementing the new TCS provisions.
this presentation consists of the information abou TDS ans TCS and their implications under GST. It also includes the differnce between both the terms.
Presentation on Audit Procedures - Stat Due.pptxVadapaav1
The document provides an overview of audit procedures related to statutory dues including TDS, TCS, and GST. It outlines objectives to ensure statutory dues are correctly deducted and paid on time and liabilities are accurate. Key aspects covered include return and ledger reconciliation, input tax credit availment verification, liability payment checks, and documentation required. Procedures for auditing TDS and TCS deductions, challans, liabilities, and returns are also summarized.
Presentation on Industry 2020: Emerging GST Issues due to COVID-19Taxmann
Topics Covered in this Webinar:
1. ITC on invoices not uploaded by vendors – Amendment in Rule 36(4)
2. Refund/Adjustment of GST already paid on bad debts, and discounts
3. ITC implications if goods are destroyed/disposed off.
4. Eligibility of ITC on masks and sanitizers
Important Topics Covered in the Webinar:
1. How to claim ITC on Invoices of February to
August 2020?
2.Whether full ITC can be availed on invoices
pertaining to period 09.10.2019 to 03.04.2020 on
which no ITC was previously availed?
3. Whether remaining ITC can be claimed in any of
the subsequent months GSTR 3B’s where partial
ITC (10/20%) was availed previously as per Rule
36(4)?
The document discusses various types of adjustments in financial accounting including accruals, prepayments, and irrecoverable debts.
It explains that accruals involve increasing both a balance sheet and income statement account to properly record expenses incurred and revenues earned during an accounting period. Prepayments are costs that are recognized over multiple periods, such as prepaid rent. Irrecoverable debts, or bad debts, refer to accounts that are deemed uncollectible and must be written off.
The document provides examples and journal entries for accrued expenses, accrued revenues, prepaid expenses, unearned revenues, direct write-offs of bad debts, and use of an allowance method for bad debts. It concludes with multiple choice questions
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Par...D Murali ☆
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Part 3) - V. K. Subramani - Article published in Business Advisor, dated March 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
This document provides instructions for manually creating accounts payable invoices in Oracle E-Business Suite R-12. It outlines the purpose, scope, basic business needs, process overview, and step-by-step procedures for invoice creation when no purchase order exists. Key steps include verifying supplier and tax information, entering invoice header and line details, adding tax lines, and approving the invoice for payment processing.
The new tax law that is informally referred to as the Tax Cuts and Jobs Act (TCJA) included many perks for businesses, but it also established new protocols for the recognition of gross income that may be detrimental. These new provisions may accelerate when income taxes are payable for certain businesses, as the recognition of gross income may be required earlier than would have been previously required for tax purposes.
The chapter consists of Tax Deducted at Source and Collection of Tax at source.
Tax Deducted at Source (TDS) is one of the ways to collect tax based on certain percentages on the amount payable by the receiver on goods/services. The collected tax is a revenue for the government.
Who is liable to deduct TDS under GST law?
A. A department or an establishment of the Central Government or State Government; or
B. Local authority; or
C. Governmental agencies; or
D. Such persons or category of persons as may be notified by the Government.
As per the latest Notification dated 13th September 2018, the following entities also need to deduct TDS-
An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity ( control) owned by the government.
A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860.
Public sector undertakings.
What is TCS under GST
Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator’s online platform. TCS will be charged as a percentage on the net taxable supplies. The provision of TCS under GST is dealt under Section 52 of the CGST Act.
Who is liable to collect TCS under GST
Certain operators who own, operate and manage e-commerce platforms are liable to collect TCS. TCS applies only if the operators collect the consideration from the customers on behalf of vendors or suppliers. In other words, when the e-commerce operators pay the consideration collected to the vendors they have to deduct an amount as TCS and pay the net amount.
Here are few exceptions to the TCS provisions for the services provided by an e-commerce platform:
Hotel accommodation/clubs (unregistered suppliers)
Transportation of passengers – radio taxi, motor cab or motorcycle
Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)
For example – M/s.XYZ stores (a proprietorship) is selling garments through Flipkart. Flipkart, being an e-commerce operator, before it makes the payment of consideration collected on behalf of XYZ, will be liable to deduct TCS.
What is the rate applicable under TCS
The dealers or traders supplying goods and/or services through e-commerce operators will receive payment after deduction of TCS @ 1%. The rate is notified by the CBIC in Notification no. 52/2018 under CGST Act and 02/2018 under IGST Act.
This means for an intra-state supply TCS at 1% will be collected, i.e 0.5 % under CGST and 0.5% under SGST. Similarly, for a transaction between the states, the TCS rate will be 1%, i.e under the IGST Act.
The document provides an assessment of the impact of adopting Indian Accounting Standards (Ind AS/IFRS) on the e-commerce sector in India.
1. Key areas that will be impacted for e-commerce companies under Ind AS include accounting for revenue, private equity funding, intangible assets, property/equipment, deferred taxes, and financial instruments.
2. E-commerce businesses operate under two main models - the marketplace model and the inventory-based (B2C) model. Accounting differs between these models.
3. Ind AS 101 provides exemptions and exceptions from full retrospective application that e-commerce companies can utilize, such as using carrying values for assets from previous GAAP and not
Guided by “Sabka Saath, Sabka Vikas, Sabka Vishwas”, the Finance Minister Smt. Nirmala Sitharaman had introduced a new No Dispute but Trust Scheme – ‘Vivad Se Vishwas’ in the Budget 2020 in the Lok Sabha on 5th February, 2020. Expectations are that the new scheme will work better than erstwhile similar scheme “The Direct Tax Dispute Resolution Scheme, 2016”, given the kind of cases that are in appeal.
To know more:https://itatorders.in/blog/eligible-person-under-vivad-se-vishwas-scheme-2020/
Get consultation under the VSV scheme and calculate your taxes : https://www.itatorders.in/vsvcalculator
The perils of angel tax and its effect on Startup ecosystemMehul Shah
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(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 2)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐈𝐂𝐓 𝐢𝐧 𝐞𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧:
Students will be able to explain the role and impact of Information and Communication Technology (ICT) in education. They will understand how ICT tools, such as computers, the internet, and educational software, enhance learning and teaching processes. By exploring various ICT applications, students will recognize how these technologies facilitate access to information, improve communication, support collaboration, and enable personalized learning experiences.
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐢𝐧𝐭𝐞𝐫𝐧𝐞𝐭:
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Information and Communication Technology in Education
Tax alert (1)
1. With effect from 01-10-2020, the Finance Act, 2020
inserted Sub-Section (1H) in Section 206C. This provision
is applicable to assessee having turnover of more than
10 Crore in the preceding year and requires a seller to
collect tax at source from the amount received as
consideration for the sale of goods if it exceeds Rs. 50
lakhs in any previous year. There has been a lot of hue
an cry around the implementation of the new provisions
of TCS on Sale of goods u/s 206(1H). The ambiguities and
confusions surrounding the provisions have led to
issuance of various clarifications vide Circular No.
17/2020 dated 29th Sep 2020 by CBDT and Professionals
and Tax Practioners have added their own clarifications
based on judgement and practicality while advising
their clients. In this article, I have made an attempt to
consolidate the areas of decision making and have tried
to approach the issue through a different perspective.
OCTOBER 2020 TAX ALERT
Rasesh Shah and Co
SECTION 206C(1H) : AREAS OF DECISION MAKING FOR COMPANY
MANAGEMENT AND BUSINESS OWNERS FOR SMOOTH
IMPLEMENTATION OF TCS ON SALE OF GOODS
TCS provision
would apply on
all sale
consideration
(including
advance
received for
sale) received
on or after 01-
10-2020 even if
the sale was
carried out
before 01-10-
2020
PAGE 1
2. At Para 4.4.2(ii) of Circular 17/2020, CBDT has clarified that “this provision applies on receipt of
sale consideration, thus the provision of this sub-section shall not apply on any sale
consideration received before 01-10-2020. Consequently, it would apply on all sale consideration
(including advance received for sale) received on or after 01-10-2020 even if the sale was carried
out before 01-10-2020”. Though the clarification has been given in respect of another issue, but
the language of the CBDT’s circular indicates that the tax should be collected when the
consideration received during the previous year exceeds the threshold limit. Even otherwise, as
per the provisions of law it is undisputed that the provision of TCS applies on receipt of sale
consideration and not Sales ‘per se’ however for administrative convenience, the management
of the Company or business owners have to take a call for adherence to any one of the
following methodology for the smooth implementation of TCS provisions.
1. DO NOT PASS ANY ENTRY AT THE TIME OF SALES ON ACCOUNT
OF TCS COMPONENT AND PAY TCS AT
TIME OF COLLECTION.
Rasesh Shah
and Co
PAGE 2
Section 206C(1H) : Areas of Decision
Making for Company Management and
Business Owners for smooth
implementation of TCS on Sale of Goods
a. At the time of Sales: Do not pass any accounting entry at the time of Sales on account of TCS
component. You may mention a Note in Sales Invoice that “The Customer shall be required to
pay an additional amount of 0.10% (0.075% if the payment is made in FY 2020-21) over and
above the Sale Consideration at the time of payment to fulfil the requirement of the provisions
of Section 206(1H)” Alternatively, an additional field in Invoice may be given stating “Amount
with TCS” but no accounting entry to be passed for the same.
b. At the time of receipt of Sales consideration: A common monthly debit note may be raised for
all total Sale consideration received in the name of Customer at the end of the month. The
Accounting Software at this point may ask whether the Sale consideration received is inclusive
of TCS or exclusive of TCS. Where the assessee selects that Sale consideration is inclusive of
TCS, the debit note should be raised by grossing up of the net amount received.
c. For outstanding Debtors as on 1.10.2020: No accounting entry needs to be passed.
d. Reflection in Quarterly TCS returns: The TCS returns may be prepared and filed as per the
dates of Debit Notes raised crediting the TCS payable account which should be paid at the end
of seven days of next month.
e. Use Cases: In this case, a consolidated entry is passed for each customer whose payment has
exceeded the threshold limit of Rs. 50 lakhs which is as per law. This is the best methodology
where there are fewer customers with ongoing business who can be trained to voluntarily pay
an additional amount of 0.10% at time of each payment. This method is also apt where the
business transactions with the customer is maintained like a current account without any
actual one-to-one correlation between Invoice and Payment so payment may be considered as
inclusive of TCS and a simple year end account contra confirmation exercise may be carried out
to discuss any mismatch.
3. a. At the time of Sales: Charge the amount of TCS on Invoice value after GST and mention
total Invoice Amount with TCS separately. In the accounting, debit the customer at the time
of Sale and credit the TCS component to separate parked account called “TCS to be
collected”. This account only acts like a “storage of memory” as separate variable for seller
because otherwise we might have to remember the amount to be collected on account of
TCS from customer in separate Spreadsheet and remind them at periodic intervals.
b. At the time of receipt of Sales consideration: After recording the Payment of Sale
consideration in customers account, a corresponding entry needs to be passed debiting the
“TCS to be collected account” and crediting the same to “TCS Payable”
c. For outstanding Debtors as on 1.10.2020: A debit Note needs to be raised for all outstanding
payment subject to applicable threshold on 01.10.2020 and credited to “TCS to be collected”
d. Reflection in Quarterly TCS returns: The TCS returns may be prepared and filed as per the
amount credited to TCS Payable account and not when the amount is credited to TCS to be
collected. Infact, ideally “TCS to be collected” is just a control account which may be reversed
as on 31st March each year by crediting Debtors account and re-entered on 1st April every
year which shall present a fairer view of the affairs of the business. Simarly, reversal entry
may be passed in case of Bad debts and so the seller does not end up paying the TCS from his
pockets
in case of bad debts.
e. Use Case: This method should be adopted by businesses wherein the payment is mostly
received on Bill to Bill basis and there are many customers whose accounting Department
releases payments only on basis of outstanding dues ledgers and at the same time, the
seller do not wish to make payment to the credit of the Government without receiving his
own payment from the customer.
2. PASS ACCOUNTING ENTRY AT THE TIME OF SALE ON ACCOUNT
OF TCS BUT TREAT IT AS PARKED
ACCOUNT AND PAY TCS AT THE TIME OF COLLECTION ONLY.
Rasesh Shah
and Co
PAGE 3
Section 206C(1H) : Areas of Decision
Making for Company Management and
Business Owners for smooth
implementation of TCS on Sale of Goods
4. 3. PASS ACCOUNTING ENTRY AT THE TIME OF SALE ON ACCOUNT OF TCS
AND PAY TCS AT THE TIME
OF CREDIT TO TCS ACCOUNT DURING SALE ITSELF.
Rasesh Shah
and Co
PAGE 4
Section 206C(1H) : Areas of Decision
Making for Company Management and
Business Owners for smooth
implementation of TCS on Sale of Goods
a. At the time of Sales: Charge the amount of TCS on Invoice value after GST and mention total
Invoice Amount with TCS separately. In the accounting, debit the customer at the time of Sale
and credit the TCS component to TCS Component.
b. At the time of receipt of Sales consideration: No additional entry.
c. For outstanding Debtors as on 1.10.2020: A debit Note needs to be raised for all outstanding
payment subject to applicable threshold on 01.10.2020 and credited to “TCS Component”
d. Reflection in Quarterly TCS returns: The TCS returns may be prepared and filed as per the
amount credited to TCS Component account.
e. Use Case: This method should be followed only for administrative convenience when
Method 1 and 2 are not feasible or those method disturbs the ease of doing business “more”.
Imagine a scenario where the seller has sold goods of Rs. 1 Cr and passed the entry on
account of TCS and the outstanding balance as on 31st March is Rs. 40 lakhs and the buyer
makes this payment in next year wherein as per law no TCS is collectible on this payment but
seller would have already deposited the TCS to the credit of the Government giving rise to
anomalies. However, this method may be required to be followed because of the peculiar
nature of the Accounting Package used by business owner or some rigidness in ERP system
where following the earlier
stated method may lead to discrepancy in some other modules of ERP.