ACCOUNT AND BOOKKEEPING SERVICES
Accounting is the pillar of any business; our accountants are capable to deal with your necessities. We offer specially crafted plans suiting your business.
Accounting is the art of recording financial transactions chronologically every day. Every business needs to create and keep up-to-date business books, which are required by law, as well as a modern need to comply with tax laws. The size of the company doesn’t matter, and compliance with the law applies to everyone equally. Payment of input taxes, TDS and GST is based on correct business reporting. Our outsourced accounting services are unique and give you more time to do business than accounting for your own business. Our accountants are well trained and supervised by an experienced and professional team. Therefore, we offer accurate and tax-effective accounting for your company.
Section 128 of the Companies Act 2013 requires each company to prepare and maintain its own books, papers and other relevant financial reports for each financial year that provide a true and fair view of the company’s business. Similar provisions can be found in Section 34 of the LLP Act 2008 on LLP
The books must be stored for 8 years.
The company or LLP is required to keep books, relevant papers, vouchers and other accounting documents, bank statements, invoices, registers, etc. for upto eight years. And if there’s a lawsuit on accounts or taxes, records should be kept until the process ends.
Penalties for disobedience
Any failure to comply with Section 128 of the Companies Act will result in a prison sentence of up to one year or a fine of at least Rs. 50,000/-, but this can be up to Rs.5 lakh or both. In the LLP case, the penalty for violating Section 34 is Rs. 25,000/- to 5 lakhs, payable by LLP, and for select partners, this is Rs. 10,000/- to Rs. 1 lakh.
The ledger should be kept at the company headquarters or in an LLP, the Board of Directors may decide to keep books elsewhere in India. However, the decision must be communicated to the ROC on form № AOC 5 within seven days. In the case of an LLP, books must be registered and maintained at its office.
In the case of an LLP, the primary responsibility for keeping books rests with the board of directors or the company’s appointed partners. In the event of non-compliance the Chief Executive Officer, Chief Financial Officer must at all time appoint the Chief Financial Officer of the company and, in the case of an LLP, to become a Partner.
Accounting and audit completion
The final account should be prepared at the end of the financial year and lead to a profit and loss account and balance sheet for the financial year. The books must be signed by two directors or designated partners. The company requires the books to be audited by company auditors, and LLP requires an audit if sales exceed 40 Lakhs.
Maintain Accounting -> Approve tax working -> Pay Tax on time -> File returns of TDS and GST
- Bills or invoices raised during a month.
- Returns when selling or buying.
- Purchase invoice or used service invoice.
- Detailed reports for all bank accounts.
- Cash book with voucher and proof.
- Other financial information.
TDS: TAX DEDUCTED AT SOURCE
What is TDS?
TDS stands for ‘Tax Deducted at Source’. Government of India introduced TDS to collect tax at the source from where an individual’s income is generated. TDS is used as a tool to collect tax in order to minimise tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date.
TDS is applicable on various incomes such as salaries, interest received, commission received, dividends etc. As per the Income Tax Act, there are different TDS rates for different payments and different categories of recipients.
TDS works on the concept that every person making specified type of payments to any person shall deduct tax at the rates prescribed in the Income Tax Act at source and deposit the same into the government’s account. The person who is making the payment is responsible for deducting the tax and depositing the same with government.
Form26AS is a statement which shows the amount of tax deducted and deposited in a person’s name/PAN in a particular financial year.
- When will TDS be deducted?
TDS withholding rules require that taxes be paid when the taxpayer receives the payment due or receives the actual payment, whichever is earlier.
- Who can reduce TDS?
The person making the payment is responsible for deducting the TDS. That person or organization must reduce the amount at some level and deposit it with the government each fiscal year.
- Return of TDS and related forms
A TDS refund is a statement issued upon successful tax payment that includes all TDS deduction transactions made within a quarter. Issued by the payer filed with the Indian Income Tax Department. Tax refund contains all TDS deduction data collected from the payer as well as other relevant information such as the permanent account numbers of the payer and payee and other data related to payments to the Government of India. It also collects information about TDS Challan.
- End dates in various forms
Taxpayers are required to submit a form that includes details of the TDS deduction, depending on the different dates and quarters.
- Penalty provision
Failure to comply with the provisions of the TDS is a Serious Offense and punishable under Section 271 (C) of the Income Tax Act of 1961, where the minimum fine is 10,000 and can be up to Rs. 1,00,000/-. Additional Section 276B applies to all such cases where intentional non-compliance has been identified. In all these cases, the sentence is 3 years in prison, which can be up to seven years.
- Is it possible to apply for a NIL TDS refund when filing withholding tax for the first time?
Answer – The law does not require you to submit a NIL TDS declaration, but can send it in the relevant quarter if requested by the employer.
- Will TDS apply in the material and labor account?
Answer – TDS is deducted from the amount paid for work only in this case.
- Are there any TDS provisions on transportation and transportation costs?
Answer – TDS is deducted from the amount paid if at any point in the previous year there are more than 10 goods carriers in the taxpayer’s possession.
- Are taxpayers eligible to pay TDS towards apartment purchases?
Answer – Apartments that cost more than Rs. 50 lakh attracts a TDS of 1% per Section 194IA.
ADVANCE TAX PAYMENT
Advance tax refers to the tax paid by the taxpayer to the income tax department during the current year without waiting for the end of the year. This is to ensure that the government can collect taxes more evenly throughout the year. Although the government collects advance tax through the implementation of the mandatory TDS, in some cases a person’s income, although taxable, does not collect the full TDS and therefore that person can claim an income tax return. Conversely, in some cases, the TDS in advance may be less than the total tax liability for the year. In all of these cases, the advance tax should be deposited.
- Prepayment of tax is mandatory for all assessors whose tax liability is more than Rs.10,000.
- Input tax is calculated by applying the tax rate to a person’s estimated income for the year.
- Input tax is payable in 4 installments.
- In the event of late payment of input tax, 1% of the interest will be charged as late fee in accordance with Articles 234B and 234C.
- If your actual tax liability at the end of the year is less than the input tax you provide, you are entitled to claim a refund.
Late payment of interest
Advance tax must be paid on time. In the event of a late payment of advance tax, the taxpayer is responsible for 1% interest per month
Who has to pay the advance tax?
Every taxpayer, whether an employee, freelance worker, or a company owned by a corporation, OPC, LLP, or corporation, must pay income tax in advance if the tax is more than Rs.10,000/- in the fiscal year.
What is considered taxation?
In case of suspected taxation, the taxpayer has to pay tax on 8% of turnover. Only private companies, HUF, and partner companies are entitled to alleged taxation. In the case of trade, the sales limit is two crores, while for professionals it is 50 shells.
Who is exempt from the advance tax?
An individual, HUF, or a company whose income is taxed based on the assumed income tax base is not required to pay tax in advance. This assistance is usually available to small businesses by paying taxes as a percentage of sales rather than actual profits.
Interest on tax deferral
Income tax must be paid approximately in the financial year itself. The legal requirement to pay advance tax is binding if tax is payable in excess of Rs.10,000/- for one financial year.
- Can I pay advance tax after the due date?
Yes, you can pay advance tax after the due date. However, after the due date, interest due to late payment will also be charged.
- What is the penalty for late payment of advance tax?
According to section 234B: If up to 90% of the input tax liability is not paid at the end of the financial year, 1% of the ordinary interest is considered a contract penalty.
- Why does the person pay advance tax?
If the tax liability is more than 10,000, payment of advance tax is mandatory. However, the company automatically deducts the TDS tax on wages.
- Who is subject to advance tax?
Under Section 208 of the Income Tax Act 1961, everyone whose tax liability has prepaid Rs.10,000/-
- How to calculate the tax payment in advance?
Advance tax is calculated by applying the applicable tax rate to the estimated individual income for the year.
- Can an employee pay advance tax?
Yes, an employee can also pay advance tax. In fact, advance taxes apply to all assessments, including employee salaries