tips to be an effective accountant ca chandresh chheda thursday 16-02-2012 ca chandresh chheda1
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TIPS TO BE AN EFFECTIVE ACCOUNTANT
CA CHANDRESH CHHEDATHURSDAY 16-02-2012
CA CHANDRESH CHHEDA 1
MAIN FUNCTION
TO PREPARE BOOKS OF ACCOUNTS ON THE BASIS OF VOUCHERS AND OTHER RELEVANT DOCUMENTARY EVIDENCE RESULTING INTO PREPARATION OF FINAL ACCOUNTS i.e. PROFIT & LOSS A/C AND BALANCE SHEET.
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BUT This is not enough for being an effective accountant…
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ADDITIONAL RESPONSIBILITIESCOMPLIANCE REQUIREMENTSUTMOST USE OF INFORMATION TECHNOLOGYFOCUS ON RISK MANAGEMENT & INTERNAL
CONTROL
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COMPLIANCE REQUIREMENT
Income Tax (TDS Provisions)VatService TaxExciseProfessional TaxPFESIC
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INCOME TAX-TDS PROVISIONSTDS RATE FOR F.Y. 2011-12
Nature of payment made to Resident Threshold Co/firm, co-op soc, L.A
Indiv & HUF
If NO/ Invalid PAN
Sec Description Rate Rate Rate
194A Interest-payable by banksInterest-payable by others
10,000 5,000
1010
1010
2020
194B Wining from lotteries/crossword 10,000 30 30 30
194C Payment to contractor-single transactionPayment to contractor- Aggregate during FY
30,00075,000
22
11
2020
194D Insurance commission 20,000 10 10 20
194H Commission/brokerage 5,000 10 10 20
194 I RentRent-Plant/Machinery
1,80,0001,80,000
102
102
2020
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Nature of payment made to Resident Threshold Co/firm, co-op soc, L.A
Indiv & HUF
If NO/ Invalid PAN
Sec Description Rate Rate Rate
194J Professional Fees 30,000 10 10 20
194 Dividends other than dividend covered by sec 115-0
2,500 10 10 20
194BB Winning from horse races 5,000 30 30 30
194F Repurchase units by MFs 1,000 20 20 20
194G Commission –sale of lottery 1,000 10 10 20
Time of deposit of TDS
Description Time of deposit of TDS
Tax deducted by a person other than Govt officer
• where income or amount is paid or credited in the month of march : tax should be deposited by April 30•Where income or amount is paid or credited before March 1: Tax should be deposited within 7 days from the end of the month in which tax is deducted.
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TCS RATE CHART
Description Rate
Alcoholic liquor for human consumption 1
Timber obtained under a forest lease/ other mode, other forest produce 2.5
Scrap 1
Parking lots, Toll Plaza Lease and Mine Quarry Lease 2
Tendu Leaves 5
NOTE: TCS has to be deposited within one week from the last day of the month in which Tax is collected.
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GUJARAT VAT
Due Date For Payment For VAT Tax Liability during P Y Periodicity Due Dates
Up to Rs. 60,000 Quarterly 22nd of the month subsequent to the end of Quarter.
Above Rs. 60,000 Monthly 22nd of subsequent month
NOTE: if tax liability exceeds Rs.10 lacs ,compulsory E-Payment is required.
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DUE DATE OF E-FILING RETURN
Traders Submitting MONTHLY returns Those Paying TAX of Rs.5,000 or less In the concerned
month- within 30 days of the end of the MONTH. Those paying TAX of more than Rs.5,000 –within 40
days of the end the MONTH. Traders submitting Quarterly Return-45 days. (As per notification dated 15/2/2011 W.e.f DEC.2010 the above time limit as been
extended by one month more.)
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DUE DATE FOR MANUAL FILING OF RETURNS
• For traders having lump sum payment permission /whose TAX liability is less than Rs.60,000-within 45 days of end of the quarter
• For all other traders not require to E-File –within 30days of end of the Month.
• In Refund cases • If Import/Export- Monthly• Others-Quarterly
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SERVICE TAX COMPLIANCEPAYMENT OF SERVICE TAX
if e-payment is done then effective due date will be 6th (up to 8pm)of the succeeding month/quarter if Service Tax Liability exceeds Rs. 10 Lakhs
.
Individual, Proprietorship, Partnership Corporate Entities, Trust & Soieties
Value realized Due Date Value Realized Due Date
April to June 5th July March 31st March
July to September 5th October Other months 5th of succeeding month
October to December
5th January
January to march 31st march
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FILING OF ST-3 RETURNSW.e.f period commencing from 1/4/2011 half
yearly returns are compulsorily require to be e-filed.
Period Due Date
April to September 25th October
October to March 25th of April
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EXCISE DUTY: PERIODICAL RETURNSForm Description Who is require to file Time limit
ER-1 Monthly return by large units Manufacturers not eligible for SSI concession
10th of following mth.
ER-2 Return by EOU EOU units 10th of following mth.
ER-3 Quarterly return by SSI Assesses availing SSI concession
20th of following qtr.
ER-4 Annual financial information statement
Assesses paying duty of Rs. One crore or more per annum through PLA .
Annually, by 30th Nov. of succeeding year.
ER-5 Information relating to principal inputs
Assesses paying duty of Rs. One crore or more per annum through PLA and manufacturing goods under specified tariff heading
Annually, by 30th April of current year.
ER-6 Monthly return of receipts & consumption of each of Principal Inputs
Assesses who is required to submit ER-5 return
10th of following month
ER-7 Annual Install capacity statement
All assessee Annually on or before 30th April.CA CHANDRESH CHHEDA 14
PROFESSIONAL TAXProfessional tax is to be paid by 30th sept. of relevant FY to
local authorities by businessmen on the following bases:
Professionals have to pay PT @ Rs.2000 pa.
Particulars Amount of Professional TAX
Turnover less than Rs.2,50,000 NIL
Turnover Between Rs.2.5 to Rs.5.0 lacs 500
Turnover Between Rs.5.0 to Rs.10lacs 1250
Turnover above 10 lacs 2400
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PROFESSIONAL TAX TO BE DEDUCTED FROM SALARIES PAID TO THE
EMPLOYEES OF PRIVATE SECTOR
Salary limit Rate
1. Salary < Rs.3,000 NIL
2. Salary > Rs.3,000 but < Rs.6,000 Rs. 20 pre month
3. Salary > Rs.6,000 but < Rs.9,000 Rs. 80 pre month
4. Salary > Rs.9,000 but < Rs.12,000 Rs. 150 pre month
5. Salary > Rs.12,000 Rs. 200 pre month
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PF, ESIC COMPLIANCE
Type Description Responsibility
PFPF
ESICESIC
PF
Contribution12% of Baisc+DA12% of Baisc+DAOf which 8.33% or Max Rs.541 for Pension Fund1.75% of Wages4.75% of WagesAdmin charges1.1% of Basic+DA
EmployeeEmployer
EmployeeEmployer
Employer
Date Description
10th Payment of PF
21st Payment of ESIC
25th PF form 12A.
12th May ESIC from 5.
11th Nov ESIC from 5.
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UTMOST USE OF INFORMATION TECHNOLOGY
Wherever possible use of software's should be made, like Pay roll Accounting. Billing Software. Stock- Quantitative records, etc.
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FOCUS ON INTERNAL CONTROL
1. ANALYSING AND RECORDING TRANSACTIONS
2. ADJUSTMENTS AND FINANCIAL STATEMENTS
(ADJUSTING ENTRIES, ACCRUDE REVENUE, ACCRUDE EXPENSES, UNEARNED REVENUES, PREPAID EXPENSES, DEPRECIATION.)
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INTERNAL CONTROL(Continues…)
3. COMPLETION OF ACCOUNTING CYCLE (CLOSING ENTRIES, POST CLOSING TRIAL BALANCE,
REVERSING ENTRIES, CORRECTING ENTRIES.)
4. INTERNAL CONTROL WITH REGARDS; CASH RECEIVABLES INVENTORIES OPERATING ASSETS (COST OF ASSET, DEP., IMPROVEMETNS, DISPOSAL OF ASSET, ETC. )
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Thank you
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