The Role A CA Plays At The End Of The Financial Year In India

The financial year in India is from the 1st of April to 31st March every year. Hence, 31st march or say the end of a financial year is an important time for every business owner, employee, and every other person who has financial obligations to fulfill.

A Chartered Accountant(CA) plays a vital role at the end of every financial year.
Every time a financial year ends, there are several major responsibilities related to finance and taxation that every person needs to fulfill.

To fulfill those, a Chartered accountant helps people with their financial and tax advisory to improve their financial position, profits and reduce the tax liabilities.

The Role Or Functions A CA Plays At The End Of Every Financial Year Are:

Maintenance and Closing the books of accounts:

A Chartered Accountant keeps a systematic record of all day to day transactions in a systematic manner that occurs in a financial year. As the financial year ends, the main role of a CA is to manage and properly close the books of accounts for that year.

By closing books of accounts, the CA prepares a balance sheet to calculate the net profit and loss and the financial position of an entity for an accounting period.

Performing statutory and internal audit:

At the end of every financial year, a CA performs a statutory and internal audit. Under the statutory audit, he/she audits the books of entities to ensure that entities prepare all financial statements with standards, accounting principles and legal considerations and all statements are true and fair in nature.

On the other hand, Internal audit relates to ensuring that all the accounting transactions and activities are in accordance with the accounting policies.

Ascertain The Profit & Financial Position:

A Chartered Accountant, by auditing and closing the books of accounts, calculates the financial position and net profit of an entity on a specific date. But calculating the net profit and financial position, it becomes easy to calculate and reduce the tax and other financial liabilities. The ascertainment of financial position at the end of every financial year also helps in making financial and investment decisions.

Taxation Services:

Another very important role a Chartered accountant plays at the end of a financial year is providing all major taxation services to their clients. The tax services include-

    • Planning and saving Tax in advance.
    • Filing tax and tax returns.
    • Prepare representations for tax authorities.
    • Maintenance of tax records.
    • Providing consultancy on tax and financial matters.
    • Investment planning to reduce tax liabilities.

With these services, a Chartered Accountant helps its clients in managing and reducing the tax liabilities and increasing net profit in hand.

Facilitate Decision Making:

At the end of every financial year, there are tons of decisions to be made related to growth, market, sales, production, finances, taxes and so on.

When it comes to the money part where cost, profit, margins, taxes, liabilities play a major role; the decision making or say “correct financial decision making” becomes very important.

A Chartered Accountant, through his/her experience in finance, economy, accounts and other important fields facilitates and helps their clients in proper decision making.

Budgeting:

At the end of every financial year, the Chartered accountants have the main task of preparing budgets. According to the resulting financial position, the profit earned in the year, and the expenses; CA prepares a budget for the upcoming year.

A budget is used to prepare to compare the actual results with expected and find variations if any. The role of CA is very important in budgeting.
A Chartered Accountant is the most important support for any business and taxpayer during and at the end of every financial year.

Everything you must know about Income Tax Consultancy

Income tax act was passed in 1961. Income tax is a term that includes taxes any taxpayer pays to the government, on income received. Whether you are a newbie or an old-hand taxpayer, question yourself, have you ever thought about saving tax on income? or Is your tax planning proper enough to save maximum tax on your income?

Often attributed to Ben Franklin is this famous quote: “Nothing is certain except for death and taxes.”

Paying taxes is necessary, but the hard part is its management. Managing taxes, in a legal format, without breaking any rules seems near to impossible.

Tax laws governed by the income tax department are very complex and so is filing and managing your taxes, but saving tax or planning your taxes, actually, is very easy with the help of proper income tax consultancy services.

As a part of chartered accounting services, tax consultancy services are provided by experienced chartered accountants, who professionally guide and help you with your taxes.

Tax consultants provide a number of quality tax services, which help you in planning, managing, and save tax on your income.

How does Tax Consultants help you?

A general perception of chartered accountants and tax consultants is that they just file income tax and prepare accounting records for businesses. In reality, they do more than just record-keeping and tax filing, here are in how many ways income tax consultants help you with your finances.

Tax planning & savings:

Tax consultants plan and help you save a lot from your taxes. There are several legal methods through which these professionals manage and plan your taxes beforehand, increase your savings, and keep your income under low tax slabs.

Tax refunds and computations:

Before the filing of income tax, hiring income tax consultants can be financially beneficial. Professional advisors compute actual taxes based on your income, and with experience in finances, calculate maximum refunds and lower your tax liability and save a lot from your income.

Filing of income tax:

While filing income tax for you, tax consultants make sure no mistakes occur, and all information is correct and is filled in their respective fields. These professionals help you with the proper filing of income tax.

Investment planning:

Whether you are a businessman or an employee, these chartered accountant professionals work on their toes and help you with planning investments, reducing maximum risks possible, that guarantee you big returns and long financial stability.

Consultancy on tax and financial matters:

Tax laws are confusing and hard to understand for a common person. Income tax consultants provide specialized consultancy on tax and financial matters, based on several legal and moral factors. By hiring a tax consultant, you can easily get solutions to all your tax and financial matters.

Maintenance of Income Tax records:

Filing of tax and refunds are important and to be done properly, but proper record maintenance of taxes, keeping in mind all rules, prohibitions, acts, heads of income, deductions, penalties, is not an easy task. Hiring a professional income tax consultant, for maintenance of income tax records not only keeps your tax practices short and smooth, but will also save your time, money, and reduce your liabilities too.

Benefits of Income Tax Consultancy.

Apart from the above tasks, tax consultants benefit their clients by

  • Saving a lot of time in preparing returns
  • Updating clients about tax laws and practices
  • Communicating and explaining all tax issues on time
  • Planning for taxes beforehand
  • Handle complex calculations
  • Prepare all documents and records properly
  • Frequent research and analysis of tax legislation
  • Continuous meetings for updates
  • Keeping compliant with tax obligations
  • Working with profit arrangements

Reasons why you should hire tax consultant/advisor.

  • To maximize your tax deductions and credits
  • Transferring your total income from a high tax slab range to a lower tax slab range
  • Defer most of the taxes to future financial years
  • Taking advantage of the current economy-boosting tax laws
  • Managing profits and losses made on capital assets to balance each other

Skills and qualifications income tax consultants have.

As a professional, tax advisors/consultants carry some very important and demanded skills and qualifications. Some of their professional skills are

  • Updated knowledge about changes in tax laws
  • Expertise in accountancy and finance
  • Experience in handling economic, law, financial and management issues
  • Good with numbers
  • Logical and analytical mindset
  • Excellent communication and interpersonal skills
  • Good influential and negotiation skills
  • Dynamic organizing and planning skills
  • Solve problems with accurate solutions
  • Proper time management
  • High ability to work under tight deadlines
  • Attention to every detail needed
  • Flexibility in approach towards tasks
  • Confidentiality in work, for clients comfort
  • Better commercial understanding
  • Systematized record maintenance.

Income tax advisors have expert knowledge in areas like corporate tax, inheritance tax, trusts and estates, VAT, TDS, TCS, personal tax, national insurance, and many more.

Whether you are an employee or own a business, income tax consultancy is beneficial for both.

Everything You Must Know About PAN Card As Issued By IT Department

Income Tax (IT) Department, India has been making a number of improvements in its services as of late, especially in regard to digitization. To contribute its fair share to the same, the department is starting the online service of issuing instant e-PAN (electronic Permanent Account Number) quite soon, reports the Times of India.

Up until now, the applicants receive their PAN card around 15 days after they fill up a required form and submit it along with all relevant documents. The issuing of instant e-PAN means the recipients will not have to wait to get their PAN card.

The instant e-PAN will be issued on the basis of your Aadhaar details. Therefore, you need to provide only your basic details such as your name and phone number, etc. and your Aadhaar details. Then, you need to get these verified by using an OTP (One-Time Password) on your registered (with Aadhaar) mobile number. The rest of the details will be picked automatically from your Aadhaar Card such as your father’s name and your date of birth. You don’t need to submit or upload any physical document in that case, according to the report.

Once the department verifies your Aadhaar details via the OTP, you will receive a digitally signed e-PAN instantly which contains a QR-code. This code has your demographic data apart from your photograph. As per an official’s statement in the report, the data in the QR-code will be encrypted as a security measure so as not to give any chance to forgery or digital photoshopping.

The issuing will be done free of cost and the online facility will save a great deal of your time. Besides, you don’t need to visit their office in person. In the words of the official provided to TOI

“The move is part of greater digitisation of income tax services and aimed at providing the facility without anyone having to visit any office.”

The department ran an eight-day pilot test to examine the proposed e-PAN service. Now, after its successful outputs, they are going to roll out the service nationwide in the upcoming few weeks.

Who Can Apply For PAN Card

  • Individuals including both majors and minors
  • Partnership Firm
  • Limited Liability Partnership
  • Trusts
  • Companies
  • Local Authorities
  • Registered Association of Persons
  • Artificial Judicial Person
  • NRIs, OCIs (Overseas Citizens of India), PIOs (Persons of Indian Origin), and foreigners falling under the purview of Income Tax Act of 1961

Importance Of PAN Card – Why You Need One

While we have so many essential identity documents in India such as Aadhaar Card and Passport, the importance of PAN Card is irreplaceable. There are so many scenarios in which the linking of PAN is essential.

Initially, the motive behind issuing this card was to prevent tax invasion as your PAN, linking all your financial transactions, provides a thorough record to the IT department for tax transactions. However, now PAN is used in other ways as well.

IT Returns Filing

The primary reason for applying for a PAN is to file Income Tax returns. Those who have taxable income must own a PAN card.

Applying for a credit or debit card

To apply for a credit or debit card, you need to provide your PAN to the bank or financial institution in question.

Opening a bank account

To open a new account in private, co-operative, or public bank, PAN is required.

Property

While buying, renting, or selling a property, you need to submit your PAN details as well as that of the person who you’re doing the property deal.

Making investments

You need a PAN card if you want to make investments in securities (such as mutual funds, equities, bonds, debentures) exceeding Rs. 50,000.

Proof of Identity

Your PAN card is one of the major documents that are accepted as your identity proof in India. It is used as an identity proof of your age, also. If you want to apply for passport, driving license, voter ID, electricity connection, etc., you need your PAN details.

Purchase of jewelry

For buying any type of statement jewelry amounting to more than Rs. 5,00,000, you need to furnish your PAN details.

Buying or selling a motor vehicle

You need PAN if you want to buy or sell a motor vehicle that exceeds the amount worth Rs. 5,00,000.

Foreign Exchange

To convert your Indian currency into a foreign one while you’re traveling abroad, you must supply your PAN card to the bank or money exchange bureau where you’ve headed to convert the money.

Fixed Deposits

You need to submit your PAN info to the concerned bank if you’re applying for a Fixed Deposit (FD) worth Rs. 50,000 and above.

Insurance Payments

You need to supply your PAN information when making an insurance payment amounting to over Rs. 50,000 a year.

Cash Deposits

RBI has made it mandatory for all banks to require the Pan details of the person who is making cash deposits more than worth Rs. 50,000 at a time.

Loans

Applying for any type of loan requires you to provide your PAN information to the bank or other lending institution/individual in question.

Telephone Connections

For those applying for a new landline phone or mobile phone connection, submitting your Pan details is necessary to the concerned operators or service providers.

What if you don’t have a PAN card yet?

In case you don’t have a PAN card yet, you can easily apply it online on the IT department’s official website without making further delays. Until then the Income Tax Department has also introduced a new rule in September this year which states that you can use your Aadhaar card details interchangeably wherever you need your PAN number.

Besides, you can fill in Form 60. Under the Income Tax Rules, 1962, this form states that you don’t have a PAN card and that your income level is below taxable income as per the IT department.

5 Reasons why you should go for internal auditing

An internal audit might not look a necessary thing to a lot of people, but it’s important. It’s, specifically, the case with small businesses that don’t feel like spending on the little resources they have on internal audits. This, however, is a sheer ignorance.

Internal audits play a major role if you want to provide your clients with efficient and secure services. And that’s exactly what your business goals are, isn’t it? In case you feel you’re lacking somewhere in these programs, take help of advisory and planning services of an expert to help you get started with the financial activities such as auditing.

What is internal auditing?

Auditing financial statements means keeping accurate records of all your financial transactions. While you can get your statements audited internally by crisscrossing the work of one department to another, it’s better to hire an expert to make a report on the accuracy of the statements. That’s because the former will require a complete training program for your employees. The best chartered accountants in Ambala, India are always available with their excellent auditing services.

Internal auditing has its own share of importance in filling the gaps in a company’s policies and procedures. They are held to manage risks and ensure a company’s policies are in compliance with the relevant laws and regulations. Let’s take a look at everything internal auditing can do for your business.

Why is internal auditing important?

  1. It provides an objective insight

There’s hard to audit your own financial statements impartially. Therefore, you’ll have to take a helping hand to make a fair judgment. While you can train your own employees to do the task, taking the helping hand of a professional is always a more economical idea. Besides, they can achieve the objective insight more accurately.

  1. It boosts the efficiency of operations

The objective insight into the policies and procedures of your company ensures that you’re operations are on the right track. And if any gap is found, you can mend it at the right time. By monitoring, reviewing, and mending your processes, you can attain more efficiency and effectiveness in your operations.

  1. It examines risks and safeguards assets

Internal auditing is a key tool to assess risks. The management and stakeholders come to identify any changes in the environment. Besides, they get to know which risks to prioritize and which to address later. In this way, they can make an effective remediation plan at the right time. if there is any gap found in the environment, you can overcome it systematically.

  1. It ensures compliance with laws and regulations

If a company performs an internal audit on a regular basis, it can make sure the policies and procedures are complying with all the relevant laws and regulations. In this way, it saves you from costly fines you can face in a non-compliance state and prepares you for the next external audit. Isn’t this a big relief?

  1. It makes your business name more reliable

Once the financial audit officials have kept up their faith in your internal audits, your authenticity improves and your clients can trust you more. Carrying out an internal auditing program from time to time highlights your professionalism as well.

If cross-training your employees to audit departments does not sound like your move, you can always look for expert financial advisors to get best management consultancy services for all your financial matters.

6 Things a Chartered Accountant Does for You

A number of elements contribute to the success of a business. Consider, for example, product and service quality, brand value and marketing skills. But what is it that manages all of these things? All businesses need the helping hand of a chartered accountant whose financial advisory and planning services can escort you from zero to zenith within days.

The general conception is this that a chartered accountant is only needed to file tax returns and make balance sheets of your company – but there’s much more to it. A seasoned financial advisor is an essential asset to shape your business’s current structure and ensure your company’s growth graph always points north.

Bookkeeping

Bookkeeping or record keeping is the foundation of a business’s financial system. It means keeping all the records of your financial transactions for your business. If done properly, bookkeeping can be one of the primary reasons for your business expansion. That’s what a CA takes care of. He analyzes all your transactions, looks into the possibility of claiming for tax relief, prevents any undue expense, and makes provisions for business expansions whenever possible.

Formulating Business Plans

It’s the extensive knowledge in their field and strategic understanding of the current and potential situation that help chartered accountants in planning business growth.

The professionals in the field are well-versed in all terms and terminology of accounting. Once they get familiar with your brand, they can proficiently analyze how productive a business plan and strategy can be for you. Additionally, they can fine tune your existing business plans to make the most of all possible opportunities.

Auditing

Auditing refers to the official inspection of a company’s accounts and records, and it’s an extremely tedious task. However, hiring a professional CA will make things sail smoothly as they are brilliant at their job and can prevent any hiccups from interrupting your business affairs.

Cost Controls

Yes, true…chartered accountants are expert in making budgets by balancing the fixed and variable costs incurred by companies. In fact, no one other than a CA is a good option when it comes to cost controlling and increased profits, both in dull and fast expanding days.

Financial Compliance

With the growth of a business, many complexities revolving around business procedures and tax requirements shoot up. Now, this is where you can put the expertise of an expert financial advisor to good use. A specialist in the field will assist you in effective tax planning and consultancy to cut down the tax you pay to the government. Besides, they use their experience, knowledge, and foresight to prepare in advance for approaching taxes. You can always count on professional CAs to be in compliance with all the relevant regulations and stipulations.

Merger and Acquisition

It is the valuable counsel of an expert CA that can be utilized to expand business operations through mergers and acquisitions. A knowledgeable chartered accountant will analyze the financial and legal implications to decide if the deal is profitable in regards to the present costs and potential growth.

While there’s much more an experienced CA can do for your business, these 6 are the ultimate services which, if given a careful consideration, can help you script a success story for your business. In case your business needs the expertise of one of the best-chartered accountants in Ambala, India, contact us for assistance.

5 Major Changes in Income Tax Rules from April 1, 2018

As per financial calendar, New Year starts from April 1, bringing changes to many things in personal finance and every tax payer needs to be aware of the new rules in income tax as these not only impact our earnings but also our day-to-day lives.  Right from the introduction of LTCG in equities to the introduction of standard deduction for salaried employees, a number of tax changes have been announced by the Finance Minister. Let’s go through the major 5 tax changes you need to know.

  1. Pay LTCG tax on stock market investments

Profits made through stock market investments are not exempted anymore. Now, you will have to pay 10% tax on your profits if you held equity-oriented mutual funds and stocks for one year. The tax implements to only those whose profits exceed Rs 100,000 in a financial year.

Please note that your profits made till Jan 31, 2018 are protected, as the rule will come into effect for profits made after 31st Jan.

  1. Higher CESS

A new CESS has been proposed: Health and Education CESS. This time it has been increased by the government from 3 percent to 4 percent for individual taxpayers on the amount paid as income tax.

  1. Senior citizens can get medical treatment for specified diseases

Currently, resident individuals and HUFs (Hindu Undivided Families) get benefit of the deduction for the amount proposed for the medical treatment of diseases like malignant cancers, AIDS, etc.  For now the deduction of amount is limited to Rs 60,000 for senior citizens and Rs 80,000 for very senior citizens. The new budget has proposed to make enhancements in the deduction limit and increased it to Rs 100,000 equally for both senior as well as very senior citizen categories.

  1. Income tax benefit on NPS withdrawal

In budget 2018, Indian finance minister announced the extended benefit of tax-free withdrawal on NPS (National Pension System) to non-employee subscribers. At present, non-employee subscribers are not allowed to enjoy this exemption.  The new budget proposes to extend the benefit of tax-free withdrawal from NPS.

  1. Reintroduction of standard deduction

W.e.f financial year 2006-07, standard deduction (available only for salaried people) got abolished. Now the government has again introduced standard deduction and provided exemption relating to transport allowance and medical expenses. This is surely going to benefit more than 2.5 crore salaried employees.  Due to the introduction of standard deduction by the government, the salaried class of India is going to enjoy a flat deduction of Rs 40,000 from the income they pay as tax.

7 Tax Saving Tips for Salaried Individuals

Are you interested to lower your tax outgo on your salary? If yes, then we’ve got you covered. This post covers some infallible ways that can be used by salaried individuals to make the most of their saving.

  1. Consider submitting your medical bills on time

To save tax on your salary, it is favourable to safely keep all the receipts of your medical expenses. Doing so can help you gain the tax benefit on your as well as your dependents medical expenses of up to Rs 15.000.

  1. Gain tax benefits on rent paid

Salaried individuals can claim tax benefit on HRA if they live in a rented accommodation. This can be partially or completely exempt from tax.

  1. LTA deduction for travel expenses

This is another best method to save tax for salaried individuals. You can claim LTA (Leave Travel Allowance) two times in a period of four years. It is not a mandatory benefit; it’s all up to your employer that while deciding your pay structure, LTA can be included or not.

  1. Daily Travel Allowance

Employees can also use this tax saving tip to gain some tax relaxation. You can ask your employer for daily travel allowance. However, it is implemented to support your expenses only of the commute between work place and residence. Daily travel allowance of Rs. 1,600/month is exempt from tax.

  1. Ask for meal coupons

You can ask your employer to pay a portion of your salary in form of food coupons. These are liable up to Rs 55/day. Therefore, you can get a part of your salary in form of meal coupons for 22 working days for up to 2 meals which results in around Rs. 26,400/year tax saving.

  1. Consider purchasing medical insurance for your family

According to section 80D, a salaried individual can claim a deduction of maximum Rs. 25,000 by purchasing medical insurance policy for him/herself as well as for his/her family (spouse and kids). To get the additional benefit, you can also buy medical insurance for your parents and claim Rs 30,000.

  1. Money under VRS

Public sector employees doing job under the State or Central Government can avail this tax benefit. If such an employee opts for voluntary retirement, then the money he/she receives as a result of VRS is free from tax up to Rs. 5 Lakh.

5 Best Ways on How to Save Tax Legally

Have you ever considered that how to save tax on your income? Whether you are a first-timer or old-hand taxpayer, if you’re not planning your taxes in a proper manner, then there is a probability that you are paying more taxes than you should. Most people find the process of tax laws really complex that they are startled to deal with it. We recommend you to don’t fall into the category of startled people. Saving tax is, honestly, not as complex as you think. There are many things which can help in saving tax for you. This post covers some completely legal ways that can be used by you to save tax. Let’s check them out:

  1. Tuition Fees

People spend a significant amount of their income to make their kids educated. I-T laws help you compensate those expenses by reducing your taxes. You can anytime claim such deductions as per the 80C of I-T Act.

  1. Education Loan Repayment

These days, a heavy rise in the cost of various education courses has been witnessed and to do such courses people often opt for education loans. Similar to deduction available on the tuition fees, education loan EMI’s submitted by you can also bring tax benefits. As per the 80E section of Income Tax Act, you can get the tax benefit for the interest paid by you on your education loan.

  1. Medical Insurance

Health check-up and medical expenses are a part of every individual’s life. If you spend some money from your income on medical insurance or towards preventive health check-up, then as per tax laws you can get some tax gains. According to the section 80D of Income Tax Act, an individual can get a deduction up to 60,000 Rs. To get the benefit, you are advised not to pay your premiums for Medical Insurance in cash.

  1. Pension Funds

Preferably, from the day one starts earning money, he/she should start planning the day of their retirement. One of the ideal ways to do so is to invest income in pension funds. Luckily, this can help you reduce your taxes. In such cases, provision related to the tax benefits are covered under various sections that includes Section 80C, Section 80CCC, Section 80CCD(1), Section 80CCD(1B), and Section 80CCD(2).

  1. Home Loan Repayment

You’ll be delighted to know that by paying your home loan EMIs, you can reduce the burden of taxes. Best of all, you can get the advantage of both interest and the principal component of your installments. If the case is that you are paying installments for your first home then a huge amount of tax can be saved. Home Loan Repayment deductions are covered under various sections that include Section 24, Section 80C, and Section 80EE.

Why not start using aforementioned tax saving methods from today onwards and get set to optimize your tax life. If you have some other best ways to save tax on your income in your arsenal then don’t forget to post your views in the comment section below. Happy Tax Savings!

5 Things to Consider While Filing Income Tax Return

Wanna file income tax return on your annual income? If you are not familiar with the fiddly process, better to take assistance of a professional who can do the work for you at the blink of an eye. In case you are planning to file income tax return from your own, you need to keep some things in mind before proceeding. Whether you are filing income tax return online or via post, during the process (which is often exercised at last minute) you may miss some important information or even commit some mistakes. This post covers the list of five such mistakes that should be avoided while filing income tax return. Let’s get started:

  1. Not defining all your income sources

This is the most common mistake people attempt while filing income tax return. Interest earned on FDs or bank saving accounts is often forgotten by many individuals. Let’s tell you that this income is taxable as per your relevant tax slab. Banks, as a rule, deduct 10% TDS on the interest an individual earned on FDs. However, if an individual fall under a higher tax slab, he/she has to pay income tax accordingly. If such incomes are not reported by an individual, it may fetch a notice from the department of Income Tax.

  1. Not paying tax on your house property

There is a notion in the mind of many people that even after having multiple residential properties, there is no need to pay income tax, but in actual it is a misconception. If you have more than one residential property, then you are supposed to pay income tax for that, even if the property is unoccupied and you are not earning any income from it. There is no income tax on the house you occupy. Other than that, tax is to be paid for all other houses you have.

  1. Providing incorrect personal information

Income tax department communicates regarding all the necessary information via email or post, thus it is extremely important to provide all personal details accurately before filing income tax. Your minor mistake can wreck havoc and you might miss some important notifications. Therefore, it’s always necessary to check/recheck your personal information like postal and email address while filing your income tax.

  1. Not informing about the exempted income

There are many types of income that are exempted from tax. Though there is no need to pay income tax for incomes like dividends or long-term gains, reporting about them to the income tax department is a necessity. Remember that, if you are not reporting about such incomes, income tax department may get such details from the investment company or brokerage house.

  1. Not verifying the income tax form before filing

Whether you have opted for filling the income tax form offline or online, mistakes may happen. Therefore, it is recommended that you must cross check the filled-up form carefully in an attempt to avoid any mistakes. Even if you’ve assigned the task of filling your form to your tax consultant or accountant, you need to verify the accuracy of the information by personally checking it.

A Complete Guide to GST Registration

Goods and Services Tax (GST) is the only indirect tax for the whole nation, making India a unified market. It is levied on the supply of goods and services, right from the manufacturer to the consumer. Despite the fact that GST has taken the world by storm, many businesses are still unfamiliar with the process required for GST registration. That’s why; we’ve come up with this tutorial to make you aware of the registration process of this new taxation regime. Continue reading.

What is GST Registration?

Every supplier of goods and services who makes a taxable supply with an aggregate turnover of more than Rs. 20 lakhs (Rs. 10 lakhs for NE and hill states) in a financial year is mandatory to register as a normal taxable person. And the process of registration is known as GST Registration. In case an organization continues doing business with no registration under GST, it will be an offense under the new tax and heavy penalties will be applied.

What is GST Registration Number?

GST Registration Number or GSTIN is a 15-digit identification number that is assigned to each candidate who applied for GST Registration. It is entirely based on the PAN number and State code. First two digits embody the State code, another 10 digits represent the PAN number of the applicant, one digit stands for the entity code, one digit is blank, and the last one represents the check digit.

Who Should Register for GST?

The following persons are required to register for GST:

  • Individuals registered under the Pre-GST law such as VAT, Service Tax, Excise, etc.
  • Businesses whose turnover exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for the North-Eastern States)
  • Individuals making interstate supplies
  • Casual taxable persons
  • Non-resident taxable persons
  • Agents of a supplier and input service distributor
  • Folks who’re paying tax under the reverse charge mechanism
  • Every e-commerce operator
  • Persons supplying online information and database access or retrieval services from a place outside the country to a person in India, except a registered taxable person

What’re the benefits of registering a business under GST?

Registration under GST will confer the following benefits to the business:

  • Legally recognized as goods and services’ supplier
  • Legally authorized to collect tax from their customers as well as pass on the taxes credit paid to them
  • Easy flow of Input Tax Credit from the suppliers to the recipients nationally

Documents required for GST Registration

The following documents would be required to obtain GST registration:

  • PAN card of the company
  • Proof of organization like partnership deed, certificate of incorporation, Articles of Association (AOA)/Memorandum of Association (MOA)
  • Details and proof of place of business such as electricity bill and rent agreement
  • Cancelled cheque of your bank account incorporating name of account holder, IFSC code, MICR code, and bank branch details
  • Authorized signatory such as list of directors with their identity and address proof in case of company or list of partners along with their identity and address proof in case of partnership firm

GST Registration Process

You can register for GST by navigating to https://www.gst.gov.in/ link. The applicant will need to submit an online application for GST registration with the Form GST-1 in tandem with details of the goods and services to be dealt. The registration payment will be made online. After the submission of the application, a temporary GST registration number would be provided. While submitting the application, the candidate would need to print a copy of the application, attach the aforementioned documents, and final GST certificate will be issued by the concerned officer.