Petroleum Sector Would Be Part Of GST Soon - Oil Minister

Dharmendra Pradhan, the union Petroleum minister, hoped about the entire Petroleum to be part of the GST. Now, products like Naphtha, Kerosene and LPG, Liquefied petroleum gas come under the GST. 

In the future it is expected that all the five items, natural gas, aviation fuel, crude oil, diesel and petrol that do not come under the GST would also fall under the umbrella of the GST. They expect all these to be part of the GST. This makes the states get perturbed GST Implementation In India as the states will not be able to get the VAT and the service tax. Pradhan however; stated that the GST would be beneficial for the states too. He said this during the ceremony of contract signing for blocks.

CBEC will be renamed and reorganized for GST regime

Due to GST, the CBEC, the central board of Excise and customs, will acquire a rename of CBIC, Central board of indirect customs. For the implementation of the GST, the CBEC, the central board of excise and customs will be reorganized too. All this would happen after the approval of the parliament. Reorganization of the CBIC has already Ind AS Implementation In India acquired an approval from the finance minister, Mr. Arun Jaitley.The reason for the reorganization given by the finance minister is the implementation and the enforcement of the GST laws.

After receiving an approval of the legislature, the renaming of the CBEC has taken place. The responsibilities of CBIC would include supervision of the work of all the formations of the field and directorates and providing assistance to the government in making of the policies associated with the GST.The department would continue the functions of the customs and the central excise levy.

CBIC would comprise of 21 zones, GST taxpayer services commissionerates-101 in totality,768 divisions,15 sub-commission rates,  49 audit commissionerates,3969 ranges and 50 appeals Business Advisory Companies In India commission rates. This would ensure providing the tax payer services to all the taxpayers through a structure of an indirect tax administration, having the presence of PAN India.

For possessing a robust network of the IT, the systems’ directorate general is being strengthened under the CBEC.All this has been decided so that a smooth transaction can be done by the taxpayers under the environment of the GST.

PM expects breakthrough on GST

In the session of the parliament, the prime minister, Narendra Modi stated that he expects a breakthrough on the bill of the GST. He also expects all the issues associated with the International Tax Advisory Services India GST to be discussed in a democratic manner. He added outside the parliament that all the political parties as well as the states have positively cooperated as far as the GST is concerned. 

He also said that moving ahead has been decided by the consent of all and via a democratic process, hoping the completion of the process of the GST before the session concludes the next month. 

Tax Experts Expect The GST To Boost The GDP By 2%

Quality of the tax system in India would become better because of the coming of the GST. This is because the burden of the tax system would get redistributed equitably between the Top GST Consultant In India services and the manufacturing. A study for finding the impact of the GST on the growth of the GDP and exports was conducted by the NCEAR on the request of the finance commission.

The study explored the impact of the GST on the growth via two methodologies-the direct cost reduction methodology and the cost reduction on the inputs of the capital methodology. The results revealed that the growth in the GDP could be about 2 to 2.5 %. The exports might get increased by about 10 to 14 %. This indeed is an astonishing increase.

There seems to be a belief that the growth in the GDP to be two would be the best option. A single rate, Ind AS Implementation the GST would lead to low costs of compliance, eliminate disputes of classifications and ensure approach’s uniformity amongst all the players. The rates should also be sufficed to be able to address all the concerns of the states associated with the revenue. In fact, the neutrality of the state revenue would be imperative.

For the success of the GST, all the states as well as the centre would require the implementation of the GST in the same manner. Through this only, the national common market could be made. The GST is the single major tax reform post 1991-92. India’s fiscal system Tax Advisory Services In India would possess the cutting edge after the flawless GST and the new direct code of the taxes. The profits get increased by 20 percent only by 2 percent reduction in the costs. This would lead to the investments. Industries because of the low costs due to the disappearance of the cascading taxes would invest more and enhance the growth rate.

For queries associated with GST, GST Implementation, Roadmap to GST and GST Rates in India. contact AKGVG and Associates and CAC India at. +91- 9811118031

Does Neglecting The Process Of Bookkeeping Have A Direct Adverse Effect On Your Business?

Have you ever been unable to maintain your books? Did you receive an unexpected tax bill? Were you unable to understand the financial? Further, were you unable to take appropriate corrective measures? Well, according to CPA, Australia the inability of certain businesses to Financial Control In India maintain the financial s resulted in the financial mismanagement making the entire business fail. Also, certain businesses not possessing any accounting record or weak accounting record also failed completely.

What do you understand by bookkeeping?

 Bookkeeping is the process of recording the company’s financial transactions. This recording helps in classification and analyzation of data for taking appropriate business decisions. For a healthy and a long lasting business the following are the reasons for the bookkeeping to play a vital role-

1. Excellent financial analysis and management

 Proper focus on the cash flow management irrespective of your being busy or idle can help you know whether the invoices are delayed or not, whether proper follow-ups on customer payments are being done or not .Your inability to track your records will delay invoices further delaying payments of the customers resulting in falling out on supplier’s list of customers and finally, making you crash down.

2. Fulfilment of Tax Obligations

for accomplishing the appropriate filing of the annual taxes, imperative information and documents are required. Not maintaining the books makes it extremely difficult for you to remember expenses and find the bills. At the time of filing tax return the tax advisor would spend time in Company Registration In India formulating an appropriate strategy for you to file returns rather than thinking about making and correcting the entries. Bookkeeping helps in maintaining an organized Balance Sheet, Cash Flow and Profit & Loss.

3. Reporting financial strategies to the Investors becomes Easy

Investors require enormous information about the financial strategies being implemented by the businesses. Without bookkeeping revealing the important information about the financial status of the company becomes difficult. Hence, preparing charts and graphs for listing the data becomes impossible without the bookkeeping.

4. Business Planning becomes Easy

Balance sheet and profit and loss accounts are important for knowing the financial status of the company. This helps the company in evaluating the current status of the progress of the company and Formation Of New Company whether the company is heading in the right direction for accomplishing its goals or not. This makes further planning of the business easy.

5. Proper Record Keeping as Required by Law

bookkeeping keeps record keeping properly organized from small to big invoices. It makes retrieving process easy when the audit time comes.

Keeping a record in a properly organized manner, from small invoice to big invoice, helps in retrieving the entire information. During the audit, the important financial s are required and due to the retrieving process the company manages to produce the information required by the auditors.

Bookkeeping helps you to do tax planning effectively, foresee your cash needs, avoid the surprises being given by the Audit Outsourcing year end taxes, make appropriate changes in your business making your business more profitable and increase the cash flow.

Aren’t these reasons sufficient for you to hire an accountant for maintaining your books? Contact AKGVG & Associates for maintaining bookkeeping to be able to make your business earn handsomely.

GST - The Road Ahead??

It seems that the government is prepared to implement the GST from the 1^st April, 2017. Implementation of the GST would require the transformation of the business. Introduction of the GST would Roadmap To GST Implementation require review as well as the change of the supply chain, tax positions, accounting, business processes and enterprise resource planning (ERP) systems. The time for the implementation of the changes is quite limited.

The introduction of the GST would bring an increase in the tax compliance obligations.

Today, a service provider having operations in twenty states can get a single centralized service tax registration but under the GST a separate registration would be required for every state. A service provider who is filing about three service tax returns per year would have to file four to five returns per state per month. This tentatively comes out to be 100 returns per month. 

A manufacturer having two factories and having operations in 20 states would approximately have 23 registrations at present (one service tax, 20 value added tax, VAT and two excise). Under the GST the registration’s number would reduce to 20. (1 for each of the state). On the other hand ,there would be an increase in the number of returns from 22(20 VAT returns and 2 Excise returns) to 100 (four to five returns per registration) per month.

GST - Are the companies prepared?

Though the monthly returns under GST would comprise of the statement of procurement and statement of supplies yet they would not only have to be prepared but also filed separately on the date specified.

As per the present law, the purchase-sale reconciliation is a requisite only for credits under the law of the VAT of only Audit Outsourcing certain states. Such reconciliation isn’t required for the Service and excise tax laws. However, after the implementation of the GST, the procurement of the taxpayers would have to be reconciled with the vendors’ sales and goods. Services’ supply would also have to be reconciled with the purchasers every month; for avoiding imposition of the liability of the tax and denial of tax credit of the input.   

For each state, GST of three different types (state GST, central GST and integrated GST) would have to be maintained as separate credit pools. The requirement for these three separate credit pools is because of the availability of the GST paid on procurement as credit against Ind AS Implementation GST liability of the output. A company possessing operations in 20 different states would have to be having 60 credit pools as compared to the 23 credit pools. The Company would also require 60 output tax accounts instead of 23 output tax accounts.

The increased compliances would enhance the transparency and the result would be positive on the Indian economy. The industry need to set in place the appropriate ERP systems and the appropriate processes for handling the change the GST would bring.

GST - FMCG Items To Become Cheaper In India

Tax experts state that the present practice is of tax on tax that is; VAT is charged on the cost of production. Additionally, VAT is also charged on the excise duty added at the gate of the factory making the cost go up. This tax on tax would get eliminated after the Top GST Consultant In India implementation of the GST. The result of this would be the reduction in the cost of many products. These products range from FMCG to the garments.

As per the tax experts the essential services like the cultural activities, the Ambulance, pilgrimages and the events of the sports  would become expensive as  the present rate is 14.5 percent and this rate would get enhanced to 18-22 per cent.Hence,the cost of traveling, eating out, banking, hiring cabs, watching movies, buying branded jewelery, watching IPL would all rise.

The present taxation system that is based on the production would undergo a change and would become a consumption based system. Since the VAT and the excise duty would reduce from 25-26 percent therefore, the manufactured consumer goods would become cheaper. The cost of the services would increase from the present level of 15 percent.

At present, about 25 to 26 percent of the cost above the cost of the production is being paid by the consumer. This is because of the value added services (VAT) and the excise duty (about 12.5 per cent). Though there is no indication of the changes to be brought because of the GST Accounting Audit Service yet tax experts state that it’ll be somewhere between 18 to 22 percent. This, considering all the possibilities, would bring down the cost of the basic goods. Certain items that are considered to be essential are not taxed today and are expected to remain out of the bracket of the tax even under the GST.

The manufacturing hubs of FMCG products get impacted because of the state/excise schemes. Under GST, there are possibilities of the manufacturing locations to get readjusted because of the commercial perspective and this readjustment might impact the prices of the goods. An excise duty of 12.5 percent and a VAT of 12.5 to 15 percent are attracted by the goods depending on the state. Further, there are varied taxes like the input tax credit retention, CST, entry tax, Octroi, etc. till the product reaches the consumer.

After the implementation of the GST, the overall indirect cost would get reduced extensively and the credit flow Ind AS Implementation In India would increase for the manufacturers. This might reduce the cost of the production and increase the profits of the base line. This would provide room for the reduction of the prices for the end users.

For seeking suggestions on GST & IND AS and Roadmap To GST & IND AS Implementation, contact AKGVG & Associates in New Delhi India

Make In India - For Smartphones Could Get Tripped Because Of GST

About 40 global Smartphone makers have been attracted to India since last two years. This was the result of the changes in the norm making it easier to make phones in India and sell them to about billion mobile subscribers. This has scaled the investments of the Roadmap To GST Implementation government in electronic manufacturing. The scaling up has been about tenfold, that is, from Rs.11, 000 crore to Rs.1.24 lakh crore. In the current tax regime about ten percent of the tax arbitrage has been for the manufacturing of the mobile phones in India. However, after the implementation of the GST, this would undergo a change. It is hoped that the government would try protecting the arbitrage somehow.

A report of IIMB counterpoint released in November 2016 estimated that about 180 million mobile phones were manufactured in India in 2016 contributing to the growth by 125 percent over a period of a year. This created about fifty thousand jobs in India.

India undoubtedly has been successful in making the companies like Micromax, Xiaomi and Samsung produce the phones at cheaper rates. The new taxation regime under GST might lead to the neutralization of the cost benefits of making these phones in India. It is expected that the arbitrage would be protected by the government somehow.

In the previous budget, a concession of one percent on the excise duty of manufacturing of the Ind AS Implementation phones in India was imposed but 12.5 percent excise duty was imposed on the phones imported to India. This increased the local manufacturing of mobile phones in India.

After the implementation of the GST, the mobile phone manufacturers will have to pay a unified tax of eighteen percent and the excise duty component will not be segregated. This would curb the exemption on the basis of the domestic manufacturing because the option of the one percent duty without the credit will be subsumed in the GST.

The government has been requested by the tax experts to not only continue the tax differentials but also maintain the same at the rate of 8-9 percent. The manufacturing body of the electronic devices has however stated that the tax burden on the manufacturers would get reduced because of the GST being on transactional value.

Taxes being paid at multiple levels burden the manufacturers with 25 to 30 percent and this percentage would reduce Financial Transaction to seventeen to eighteen percent because of the GST.There is one more aspect to the implementation of the GST. For providing the competitive advantage to the mobile phone manufacturers, the industry will have to wait for the decision of the states that is, wanting to extend the lower GST rates or not. 

Want To Set Up Your Business In India?

The doors for the international companies have been opened by the government of India to open their subsidiary company or branch in India. This move of the government was welcomed Business Setup Services by the international brands and they have started opening their subsidiary branches or companies in India.

Companies having their operations in countries other than India can set up a subsidiary in India that is wholly owned by the company or the business .100% foreign direct investment is allowed under the policy of foreign direct investment issued by the government of India. Only the following types of businesses or companies can be started by a foreign company wishing to start their wholly owned subsidiary in India.

• ·        Private limited company
• ·        Public limited company
• ·        Unlimited company
• ·        Under sole proprietorship

International business groups or companies through the business entities can also set up their operations in India. These business entities are as-Branch office, Project office, Liaison office or Company Registration Consultants representative office. The subsidiary companies of these companies need to register themselves with the registrar of the companies that will permit them to undertake the business activities that are allowed.

It is necessary for you to choose the right business consultant in India possessing an expertise in starting a subsidiary company in India suiting the purposes of the company and taking care of the tax planning and liability issues in India. We have a lot of professional experience in assisting the foreign direct investors in not only starting but also setting up the subsidiary company in India.

Foreign direct investors planning to open an office or start a subsidiary company in India for the purpose of Fixed Asset Management investment in India are required to take the approval from the government of India. Our experienced professionals can help you attain the approvals and perform the liaisons and complete the paperwork within the stipulated time.

We can also provide you with the help in the following-formation of subsidiary in India, incorporation in India, opening a branch in India, formation of a subsidiary in India, types of companies in India, procedure for the formation of a company in India, and forming private limited company in India.

Is India Prepared For Corporate Reporting's Perfect Storm?

A survey comprising of 40 CFO s of India and 50 % financial controllers of large organizations were asked if they were prepared to handle the storm of corporate reporting.

Why The Expectations From The Corporate Reporting Have Increased?

The units of Indian companies doing the business have increased by 28 percent and the number of products and services Financial Control sold by the Indian companies has increased by 20 percent. The challenge of effective reporting is being faced by these companies. In fact, further bigger challenge is to make an effective operating model for financial reporting.

43 % companies feel that the standards of the reporting are not satisfactory and 40% companies feel that the changes in the reporting systems are required.

Due to the standards of reporting not being appropriate, it is necessary to make the necessary changes in the reporting system. A storm has been created in the reporting system of the corporates. This has happened because of the regulatory developments and the notifications that include the amendments in the companies act and introduction of the Indian accounting standards.

Corporate reporting has been given a lot of importance by the Indian stakeholders.33 percent Formation of A New Company of the audit committees have enormously increased their attention to the overall reporting. The reporting system of the financial regulators has become better by 28 percent, the investors’ reporting system has improved by 33% and the reporting system of analysts has improved by 28%.

The major drivers for improving the reporting system in India include greater transparency-38%, improving control and compliance-35%, meeting new reporting regulations-35% and meeting the demands of thee investor community-35%.

The three major areas to be kept in mind for appropriate reporting include understanding the insights Control Risk Assessment by building relationships with the audit committees, proper governance and utilizing analytical and technical capabilities for meeting the increased demands. This broadens the skill set of the entire team.

Analysis Of The Improvements In The Financial Reporting

1.     The major technological barriers are the quality of data received, the lack of integration and the dates of the architecture of the IT.

    a.  The topmost challenge being identified by the Indian respondents is that the data received is not consistent for organizing the proper reporting.

      b. The priority for the reporting should be building board relationships .However, the priority of the Indian respondents is on certain other factors  and these factors include acquiring big data and analytics, upgrading the  persisting infrastructure of the IT and integrating the reporting system as  per the strategy of the business.

     c. The investment in the reporting technologies does increase. This reflects that there are issues pertaining not only to the quality of the data received but also the consistency of the data received.

     d. The reporting systems in India concentrate only on the centralization with certain local activities. In the future 63 percent people would expect control in the reporting system being reported from the head office. This reporting should reflect significant responsibilities and should do a comparative study of the global as well as the local market.

2.     Analytics is highly used in reporting to the CEO as well as the management team. The skills most needed Limited Company Registration for improving the reporting system include risk management, regulatory knowledge and technical accounting. 

3.     We are a global leader in advisory services. The quality and the insights of our services make you trust us and have confidence in us. We play an important role in building a world that is better for the people, the communities as well as our clients.

Five Often Missed Tax Deductions For Small Businesses

All set for filing the tax returns? Hurry and take advantage of these five tax deductions. Remember deduction can only be availed if you are mentioning the deduction.

Lifetime Learning Credit - No course can be considered to be very small. So if you wish to weave a basket or Tax Advisory improve your working skills, you can go ahead and join a course. Out of the initial dollars 10,000 you can claim 20 percent. The maximum limit would be dollars 2000 an year. The condition prevalent for availing this is that the course should have been done from an accredited institution.

Business Travel Deductions - While traveling either for your business or for a traveling trip, your trip Ind AS Implementation Firm is deductible but there are certain rules to it. If you undertook your business trip while driving, a standard mileage of 56.5 cents/mile gets deducted. In case if your trip is longer, meals and entertainment get deducted up to 50 percent.

Sales Tax Deduction - Choice of getting either state income tax deducted or state sales tax deducted is entirely up to you. You need to calculate the one where deductions are more and get the same deducted. Calculator for calculating the same is available with the IRS.

Health Insurance Deduction - In case of being self-employed, the monetary aspects paid for yourself and your dependents get hundred percent deducted. But if you are an employee then also you can avail seventy two percent of the premiums on the Health coverage tax credit. This credit is refundable irrespective of your owing zero percent on tax.

Charitable Contribution Deductions? - I’m sure you must have given a bag full of clothes to charity. If you Company Formation have done so, do remember to collect the receipt from them. Taking a receipt can help you avail the deduction. The fair market value of your donations can be claimed easily.

Undoubtedly, keeping a track of your lifetime learning credit, business travel deductions, sales tax deduction, health insurance deduction and charitable contribution deduction can be extremely tedious.

Therefore, you need an accountant who can keep a track of all your activities and collect receipt and record it timely for you to get your deductions done. For needing an accountant, you can contact AKGVG For more. Business Setup Services

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Is Equalisation Levy An Appropriate Decision Of The Government?

In the budget of 2016-17, the finance minister introduced a new tax system named as the ‘equalisation levy’. This tax of six percent would be levied on the revenue earned through online advertisement. The non-residents who would have received any specific service for more Accounting Audit Service  than one lakh from a resident possessing business in India or a non-resident being permanently settled in India would have to pay the equalisation levy tax but this would be exempted from the income tax.

The committee of the government has decided to not only charge the equalisation levy on the online advertisements alone but also to charge on thirteen other transactions like website designing and maintenance, digital platform for sale of goods and services, cloud computing, online marketing, online download of software and applications, etc.

Aren't there enormous non Indian companies and whether this tax to be levied on non-Indian residents has been dealt with in detail? It has been clarified that the tax is very different than the tax earned on the income therefore; it has to be charged differently. This tax would not be a part of the income tax yet this tax would be levied as this tax has been categorized as a separate tax.

The controversy here is that whether this tax is an additional tax or whether this tax would exempt the Transactions Advisory online advertisement service tax. Formulation of the levy tax is supposed to be beneficial for the non-Indian companies indulged in making online advertisements because this would exempt them from paying the tax under the act of the income tax.

Now there is still a possibility for the officials of the income tax department to charge forty percent more tax from foreign companies settled in India. In these cases, the equalisation levy might also get charged. Therefore, the foreign companies might end up paying double tax in India. This is a concern and hasn't yet been addressed.

The major concern here is that the tax payer would be unable to appeal to the tax officials or the tax authority against such issues. Such issues need to be addressed before charging the equalisation levy tax. Obviously, this added cost can’t be paid by the foreign companies. Thre fore, such issues remain unaddressed.

Obviously, such a tax would invite challenges and such challenges can only be addressed if the Private Limited Company Registration payee and the payer negotiate on the arrangements pertaining to their business. This can only help us know who should actually be the one to pay the additional cost. 

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GST Would Be A Major Step Towards Tax Reform In India

The taxation system in India is extremely complicated. Infact, direct as well as indirect taxes are being collected by the central as well as the state governments in India. Therefore, doing business becomes difficult. For a business man who pays two different taxes finds paying two types Tax Advisory of taxesto bea tedious job because this includes maintenance of two different types of records. This leads to certain businessmen escaping the paying of the taxes. Due to various kinds of taxes, the businessmen find it extremely difficult. Therefore, the Government has decided to start the Goods and service tax being widely used in more than 150 countries.

The goods and service tax would be extremely beneficial because it would replace all the indirect taxes levied by the state Internal Financial Control as well as the central government. This would bring an end to the indirect taxation system. The benefits to the various companies would be as-

Ease of doing business for the companies-A business undergoing various states has to pay the taxes of various states. Every state possesses its own fee structure and fee payment. This complex system will come to an end with the GST as centralization and uniformity would be prevalent.

Expansion of the business would become easier-A business having a turnover of more than Rs.5lakh has to be having Implementation Of GST In India a VAT registration. After the , this amount would increase to Rs.10lakh and people possessing the business with a turnover from Rs.10 lakhto Rs50 lakh would have to pay the taxes at a less rate.

Getting respite from Sales as well as services-Businesses coming under two categories of sales as well as services like restaurants have to pay vat as well as the service tax on the items separately. This differentiation would end because of the GST.

Implementation of the GST appears to be a win situation for certain businesses. It would even enhance the competition and foster the growth in the longer run.

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