TIPS TO BE AN EFFECTIVE ACCOUNTANT CA CHANDRESH CHHEDA THURSDAY 16-02-2012 CA CHANDRESH CHHEDA1

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.


BUT This is not enough for being an effective accountant…


ADDITIONAL RESPONSIBILITIESCOMPLIANCE REQUIREMENTSUTMOST USE OF INFORMATION TECHNOLOGYFOCUS ON RISK MANAGEMENT & INTERNAL

CONTROL


COMPLIANCE REQUIREMENT

Income Tax (TDS Provisions)VatService TaxExciseProfessional TaxPFESIC


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


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.


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.


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.


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.)


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


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


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


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


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



5. Salary > Rs.12,000 Rs. 200 pre month


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.


UTMOST USE OF INFORMATION TECHNOLOGY

Wherever possible use of software's should be made, like Pay roll Accounting. Billing Software. Stock- Quantitative records, etc.


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.)


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. )


Thank you


Documents

TIPS TO BE AN EFFECTIVE ACCOUNTANT CA CHANDRESH CHHEDA THURSDAY 16-02-2012 CA CHANDRESH CHHEDA1