Responsibility of New Businessman
Business man should have a general idea of all compliances he should take care along with his business.
After starting a business one businessman should take care of few aspects in addition to marketing, selling and managing business. Its the belief of business people that compliance relating to laws of land are taken care by the paid professionals. Even after such professionals honest efforts, a business man is ultimately responsible for all the deeds. He should have a general idea of the compliance he should take care along with his business. Few compliance are placed before you in this article to avoid non compliance cost at later stage of your business. You should wisely choose the method of maintaining books of accounts. In this computerized era, it’s better to opt robust computerized bookkeeping. Various ERPs available in the market. Like Tally ERP, Zoho books, quick books…ect. Without a good accounting system and internal control in your business, you can’t succeed in the business world.
GST & Relevant issues
After getting GST registration you should follow the following steps: 1. Display GST number in name board of your business. 2. Display GST registration certificate at your business place visible to your visitors . 3. Display GST number visible at your business place. 4. Provide your supplier your GST number. Insist him to upload the Invoice in his GSTR1. If your supplier fails to upload the invoice into to GSTR-1, you will lose the input tax credit. (Rule 36(4) of CGST Act) 5. Choose proper invoice copy for your outward supply. (Sample enclosed) 6. Maintain Debit Note, Credit note, Receipt and Payment Vouchers including all Outward Supply details in duplicate. You have to maintain the stock register too. 7. Do not miss any purchase bills, asset purchase bills and expense bills. Because you will lose input tax credit you have paid during inward supply. 8. Identify proper HSN code or SAC and collect output tax and deposit it to the government. 9. Identify the proper place of supply for charging CGST/SGST or IGST. 10. Generating E-way bill, if your consignment value is more than Rs 50,000. 11. Know whether your inward supplies liable for reverse charge mechanism. 12. File GST returns within the due dates. (Check link at reference section below to know about due dates) 13. Educate your employees about the compliance. Educate them about the workplace ethics. 14. Check GSTR-2A regularly to keep track of your supplier uploading your invoice to GST site. 15. Respond to departmental notices without delay. 16. Make necessary amendments in your GST registration if the situation warrants. 17. Keep in touch with your consultant. 18. After financial year-end, you have to file GSTR Annual return and get your GST records audited if applicable. (Check link at reference section to know about annual return) Note: Non-compliances of above will directly or indirectly cost you more. Either by way of departmental penalty OR by way of business loss.
Income Tax
1. You have to keep track of your payments. Keep in mind, you should not pay in cash more than Rs 10,000 to a person in a day. (Section 40A(3) Of Income Tax Act) 2. You should not lend in cash more than Rs 20,000 to a person in a year. And you should not accept in cash more than Rs 20,000 as a loan from a person in a year. (Exception Bank transactions). (Section 269SS and 269T Of Income Tax Act) 3. Cash acceptance from any transaction like sale, gift, loan repayment acceptance in excess of Rs 2,00,000.00 to be avoided.(Section 269ST Of Income Tax Act). 4. Consult your consultant periodically to check whether any payments attract TDS provisions. 5. Plan your tax early. Tax planning is better than tax-avoiding. Make tax-saving investments. 6. Respond to departmental notices without any delay. 7. Pay correct Income tax and you will be eligible for more finance from financial institutions. 8. Income tax is the bench mark to know your loan eligibility. Prepare monthly financials, budget your sales, track your performance, identify the gaps. Do not forget to learn from your mistakes.