Circular

CIRCULAR TO CLIENTS

 

Hearty Greetings from Ganesh Prasad to all our Valued Clients

 

We are glad to issue this Circular to enlighten you in different aspects to be taken note of by you while running your business or profession and at the time of annual accounts closing.

 

Particulars

Applicable

For

Individuals

And HUFs

For Partnerships For Companies/ LLPs For Trusts/ Societies/ Sec 8 Cos.
Due date for completing Audit of Accounts NA

 

30th September

 

 

Compulsory audit of Accounts under relevant Laws NA

 

Yes
Due date for Tax Audit (if sales is over Rs.100 lacs or gross receipts from Profession or Services is over Rs.50 lacs and filing of IT returns  

30th September

 

 

Due date for filling IT returns in general 31st July/30th Sept 30th September 31st July
 

Compulsory maintenance of books of accounts for business

 

If sales is above  Rs.10 lacs

 

Compulsory

Compulsory if receipts are over

Rs.50, 000/-

Compulsory maintenance of books of accounts for profession If revenue is above Rs.1.20 lacs If revenue is above Rs.1.20

lacs

 

Compulsory

Compulsory if receipts are over

Rs.50, 000/-

Obtaining Permanent account No:

 

Compulsory for all since any matter relating to IT requires PAN and bank accounts can be opened only with PA No.
Tax deduction Account Number for payment of salary liable for

TDS, Interest, commission etc

Compulsory Compulsory Compulsory Compulsory
Due date for remitting TDS 7th of Succeeding month

 

Due date for filling TDS Quarterly Return 15th of Succeeding quarter
Statement of stock at the year end and stock for 31st March to be done for all trading and manufacturing businesses. The stock statement as on 31st March to be duly certified by Partners/Directors and to be produced for audit Yes, if business or any trading is carried on Compulsory Compulsory Yes, if any trading is carried on
Payment of Advance Tax if tax liability is over Rs.10, 000/- Compulsory
Registration with Service Tax If in Profession other than Doctors. If any specified service
Original Proof to be attached with returns Donation receipts, Tax credit challans Donation receipts, Tax credit challans Donation receipts, Tax credit challans Donation receipts, Tax credit challans
 

 

 

Copy of Investments to be attached

Mediclaim, ULIP, LIP, PPF

NSC, NSS Mutual Funds, House Loan repayment  & Interest up to Rs.1.50 lacs

 

 

 

Nil

 

Books required by the Auditors

All records maintained in your business or profession in original and proof of investments, assets purchased, All incomes form Business, Profession and Interest earnings, Loan given and taken with relevant proofs, details, proof of interest payments etc All books pertaining to Business or Profession with receipts etc., proofs of investments, Assets purchased Loans etc. Receipts, Bills, Vouchers proof of investments, Bank Accounts etc.
 

 

 

Persons eligible for Salary and Interest

Nil Working Partner-Salary and all partners – interest provided the Partnership Deed specifies the same and the expense is shown in P & L a/c. Managing and

Whole time Directors for salary, interest, Loan for Director, Share Holders

Nil
 

 

 

Statutory Meetings to be convened

(For Companies)

 

 

 

Nil

Board meetings every quarterly and for accounts adoption and

AGM before 30th September

Convening Board Meetings every quarter, AGM before 30th September
 

Statutory Meetings to be convened

(For LLPs)

Nil No Board Meetings One Annual Meeting for review. ROC returns to be filed before May.
Chartered Accountant’s Certificates to be attached with Returns For claiming deductions u/s 80-HHA to HHD, 80-IA, 80 IB etc., Statutory payments to VAT, PF, ESI etc.
Maintenance of Minutes Books NA Compulsory
Maintenance of Statutory

Registers

NA Compulsory
Proof (copies) of Purchases to be attached Bills for purchase of assets where depreciation is claimed
Filling of Return for Foreign Currency Donation NA

 

Before 30th June
 

 

 

 

 

General Income Tax rate

10% from

Rs.250,000 /-

To Rs.5 Lakhs

20% up to Rs.10 Lakhs

Above

Rs.10 Lakhs-

30%

30% on Taxable income with no lower limit No Tax if the excess income is utilized over the next 5years,

Otherwise

@30%. All business receipts will be taxed as income from business as per section 2(15) of the IT Act, 1961 even though it’s recognized as a trust/ society etc u/s 12 AA.

IT Surcharge 10% if net income exceeds Rs.1 crore 10% if net income exceeds Rs.1 crore NIL
Time before which you should submit the books/soft copy of accounts to Auditors 30th June 31st August 30th June
 

 

Statutory Returns to be filed

 

Nil

With ROC before 30th November With Registrar of Societies before 30th November
 

 

 

 

Valuation of Stock Applicable to all Manufacturing & Trading Concerns

(a)   Raw material to be valued at landed cost including freight, cartage transit insurance less Discount if any.

(b)   Stock in process to be valued at cost including Material, Labour & direct overheads,

(c)   Finished goods to be valued at cost of Material, Labour overhead & Administrative overheads, but not including Selling Expenses & Interest.

(d)   Value of Materials such as Packing and allied items to be valued at cost and shown as Current Assets.

(e)    Value of any construction is to be taken at cost of Material, Labour & overheads.

Physical Stock of Finished Goods, Raw Materials etc., To conduct the

Physical verification as on 31st March

 

Physical verification of stocks to be duly conducted as on 31st March and to be certified by Partner of a Firm/Concern and Director of a Company. This may be produced during audit of accounts
ICDS (Income computation and disclosure standards) under the Income Tax Act. Applicable to all assessees. We shall be doing the computation in accordance with TEN standards prescribed by the Tax Authorities. This is applicable from 1.4.2016.

 

We will be pleased to offer any clarification that you may require in this Circular. Please ensure that you adhere to the formalities.

 

Assuring you of our best services at all times.

 

Regards,

 

 

 

S.Natanagopal

Ganesh Prasad, Chartered Accountants.

 

 

 

 

 

 

 

 

Annexure – I

 

Rates for Tax deduction at source:

 

 

Nature of Payment

Cut Off amount TDS Rate %
Induvidual / HUF Others
194 A Interest other than interest on securities to resident

On Bank Interest

Rs. 5,000 p.a

 

Rs.10000 p.a

10 10
194 C Payment to resident Contractor / Sub contractor Rs.30,000 per contract or Rs.75,000 p.a 1 2

 

194 H Commission or brokerage to a resident Rs.5,000 p.a 10 10
194 I Rent to a resident (Excepting residential)      
  Rent for Plant , Machinery & Equipments Rs. 180,000 p.a 2 2
  Rent for land, building or furniture Rs. 180,000 p.a 10 10

 

194 J Professional Charges Rs. 30,000 p.a 10 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax deduction at source is mandatory for all Individuals also, if their business receipts exceed Rs.100 lakhs or professional receipts exceed Rs.25 Lakhs. Those who are liable to deduct tax a source on the above heads shall have to obtain Tax Deduction Account No. (TAN) apart from regular PAN. Its advised that if  any TDS obligation arise as mentioned here, please obtain the PAN of the payee without fail.

 

 

Similarly TDS is mandatory for all Trusts, societies or section 8 company under the Companies Act, 2013, irrespective of their income being exempt u/s 12 AA of the Income tax Act.

 

The Tax Deductions should be remitted on or before 7th of succeeding month. Every quarter a return has to be filed for Tax deduction on Salary in 24 Q and for other deductions in 26Q.  Return for the last quarter i.e ending March should be filed on or before 31st May 2014.

 

Delay in furnishing the quarterly return will involve a daily fee of Rs.200/- till the actual date of filing. The maximum fee will be to the extent of the tax due to be deducted. Please ensure timely compliance otherwise unnecessary fee has to be paid.

 

Important Due Dates for Service Tax

 

  1. Registration

 

Service provider/receiver/payer: Within 30 days from the due date on which service tax is levied or commencement of business, whichever is later.

 

  1. Payment of service tax

 

Obligation to collect and remit Service Tax arise when you render and service other than services mentioned in the negative list (for eg. Medical service) and the gross revenue from such service exceeds Rs.10 lakhs in a year. You need to obtain Service Tax PAN separately. The service tax has to be collected @ 12.36% on the value of service and remitted before the 5th of next month. Service Tax return has to be filed on a half yearly basis as given below.

 

  1. Service tax collected is payable in Government account by individuals, proprietary concerns and partnership firms:

 

 

Payable on amounts received during the quarter Payable by Returns
1st April to 30th June 5th July Apr-Sep to be filed

before 21st October

1st July to30th September 5th October
1st October to 31st December 5th January Oct -Mar to be filed

before 21st Apr

1st January to 31st March 31st March

 

 

 

  1. Service tax collected is payable in Government account by persons other than individuals, proprietary concerns and partnership firms:

 

Payable on amounts received during the Month Payable by
April 5th May
May 5th June
June 5th July
July 5th August
August 5th September
September 5th October
October 5th November
November 5th December
December 5th January
January 5th February
February 5th March
March 31st March

 

 

 

  1. Returns

As service provider/receiver/payer

 

For the half year To be filled by
1st April to 30th September 15th October
1st  October to 31st March 15th April

 

 

  1. VAT AUDIT

 

Vat Audit Report for all entities having turnover of over Rs.100 lakhs to be filed before 30th  November

 

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