CA CMA Syam sundar

  Document Types for Accounts Payable (AP): KR - Vendor Invoice KG - Vendor Credit Memo KZ - Vendor Payment (Payment to Vendor) RE - Down Payment Request DR - Customer Invoice DZ - Customer Payment LN - Vendor Invoice for Asset IV - Vendor Invoice (for incoming invoices) K1 - Vendor Invoice (partially cleared) Transaction Codes (T-Codes) for Accounts Payable: FB60 - Enter Vendor Invoice (Non-purchase order related) FB65 - Enter Vendor Credit Memo F-43 - Enter Vendor Invoice (Purchase Order related) F-44 - Clear Vendor (Open Items) F-46 - Vendor Down Payment F-47 - Post Vendor Down Payment Request F110 - Automatic Payment Program (for processing payments) F111 - Automatic Payment Program (alternative payment program) F-51 - Post Vendor Payment (Manual Payment) F-53 - Post Outgoing Payment F-58 - Post Manual Outgoing Payment F-59 - Post Foreign Currency Payment F-32 - Clear Vendor (Clear Open Items) F-36 - Manual Payment (Vendor) FB01 - General Document Entry (For all financial trans...

𝐓𝐡𝐞 𝐄-𝐖𝐚𝐲 𝐁𝐢𝐥𝐥: 𝐀 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐚𝐥 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 🚛📦 𝟏) 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚𝐧 𝐄-𝐖𝐚𝐲 𝐁𝐢𝐥𝐥? An E-Way Bill (EWB) is a digital document required for transporting goods worth ₹50,000 or more under GST. It consists of: Part A – Consignment details (invoice, supplier, recipient). Part B – Vehicle details (mandatory if distance > 50 km). Value of Goods(VOGS) = Taxable Value+Tax Amount 𝟐)𝐖𝐡𝐞𝐧 𝐢𝐬 𝐢𝐭 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐝? ✅ Inter-State: Mandatory irrespective of VOGS in case of Job Work ✅ Inter-State: Mandatory for goods worth ₹50,000+ ✅ Intra-State: Required in most states for ₹50,000+ (some states have higher limits). ✅ Distance-Based: Up to 50 km: Only Part A needed. Above 50 km: Both Part A & Part B required. 𝟑)𝐄𝐱𝐞𝐦𝐩𝐭𝐢𝐨𝐧𝐬 𝐟𝐫𝐨𝐦 𝐄-𝐖𝐚𝐲 𝐁𝐢𝐥𝐥. 🚫 Exempted Goods: Milk, fruits, vegetables, currency, newspapers, jewelry, LPG, etc. 🚫 Exempted Situations: i)Non-motorized transport (cycle, handcart). ii)Movement within the same premises. ii...

  GST Compliance in the Retail Sector: Key Insights for Businesses The retail industry in India operates in a dynamic GST framework, making compliance essential for smooth operations. From registration to ITC management, businesses must stay updated to avoid penalties and optimize tax benefits. Here are the key areas retailers should focus on: ✅ GST Registration & Composition Scheme Mandatory for businesses exceeding ₹40 lakh turnover (₹10 lakh in special category states). Small retailers with turnover up to ₹1.5 crore can opt for the Composition Scheme for simplified compliance. ✅ Tax Invoicing & E-Invoicing Compliance Proper GST-compliant invoices with HSN codes are essential. Businesses with turnover above ₹5 crore must generate e-invoices for B2B transactions. ✅ Input Tax Credit (ITC) Management GSTR-2B reconciliation is crucial to avoid mismatches and cash flow issues. Proper apportionment of ITC for taxable and exempt goods is necessary. ✅ GST Returns ...

1  Parties   Are the parties clearly identified, and are the signatories authorized to commit to the agreement? 2️⃣ Scope of Work   Is the scope of work clearly defined and comprehensively described? 3️⃣ Acceptance   Has the offer been formally accepted by the relevant party? 4️⃣ Consideration and Responsibility   Does the contract state the consideration (what each party will get in return) and outline the responsibilities of each party? 5️⃣ Delivery   Does the contract specify delivery timelines, including dates and milestones? 6️⃣ Payment Terms   Are the payment terms and conditions clear and defined? 7️⃣ Variation/Change Orders   Does the contract outline the process for requesting and approving changes or variations to the scope of work? 8️⃣ Dispute Resolution   Are there clear steps for resolving disputes, including negotiation, mediation, or legal recourse? 9️⃣ Force Majeure   D...

 RCM Paid but Not Properly Accounted? A Common GST Mistake! 🚨 Many GST taxpayers pay Reverse Charge Mechanism (RCM) liability but fail to record it properly in their books of accounts. This leads to compliance issues, mismatched returns, and loss of eligible ITC! 💡 Common Mistakes Taxpayers Make: ❌ Paying RCM but not recording it separately ❌ Missing out on input tax credit (ITC) claims ❌ Incorrect ledger maintenance, leading to return mismatches ✅ Proper Accounting is the Key! To avoid these mistakes, maintain separate ledgers for RCM transactions: 📌 Output IGST-RCM | Output CGST-RCM | Output SGST-RCM 📌 Input IGST-RCM | Input CGST-RCM | Input SGST-RCM

Ever felt overwhelmed while making an international payment? With so many tax laws, compliance requirements, and documentation checks, it's easy to miss something—leading to penalties, disallowances, or even regulatory trouble. Here’s a quick checklist to determine whether a payment to a non-resident is taxable in India. 1. Where Does the Income Arise? (The “Source Rule” – Section 9 of the Income-tax Act, 1961) If the income is earned or deemed to be earned in India, it’s taxable here! Common taxable payments under Section 9: - Interest, Royalties and Fees for Technical Services - Business income if the non-resident has a Permanent Establishment (PE) in India under Section 9(1)(i). If the service was performed entirely outside India with no connection to India, it might not be taxable! But always double-check. 2. Does DTAA (Double Taxation Avoidance Agreement) Help? - Check if India has a tax treaty with the recipient’s country. - If applicable, the tax rate under ...

1. Accounts Receivable (AR) -Reconcile customer invoices and payments. -Ensure all outstanding invoices are sent to customers. -Follow up on overdue invoices. -Post adjustments for bad debts or doubtful accounts, if necessary. -Review the AR aging report. 2. Accounts Payable (AP) -Verify and reconcile vendor invoices. -Ensure all bills for the period are recorded. -Process payments for due invoices. -Review AP aging report for overdue payments. -Accrue unpaid invoices for services received but not billed. 3. Bank and Cash Reconciliation -Reconcile all bank accounts with statements. -Match cash receipts and payments with the ledger. -Investigate and resolve discrepancies. 4. Revenue and Expenses -Review and match revenue with invoices. -Record unbilled revenue as required. -Accrue for any incurred expenses not yet recorded. -Ensure expenses are categorized correctly. 5. Fixed Assets -Record any purchases, sales, or disposals of fixed assets. -Update depreciation sched...

How to start an Audit❓❓❓ 1️⃣ Understand the Company & Plan the Audit 📌Know the Business: Learn about the company, what it does, and its financial risks. 📌Engagement Letter: Get an official letter that explains what the audit will cover. 📌Find Important Areas: Focus on key things like revenue, expenses, and assets. 📌Set Materiality: Decide how big an error should be before it becomes a problem. 📌Make an Audit Plan: Plan how you will check each part of the financial records. 2️⃣ Check Risks & Internal Controls 📌Identify Risks: Find areas where mistakes or fraud could happen. Test Internal Controls: See if the company’s rules and systems prevent errors. 📌Do a Walkthrough: Follow a transaction from start to finish to understand the process. 3️⃣ Check the Financial Records 🟦 Balance Sheet Items 👉Cash & Bank: Check bank statements and confirm balances. 👉Receivables: Verify how much customers owe and if any amount is doubtful. 👉 Inventory: Count stock and...

  Year-End GST Checklist: As we approach the end of FY 2024-25, businesses need to wrap up key GST compliance activities to ensure a smooth transition into the new financial year. Here’s a quick self-check to help you stay on track: Preparation For FY 2025-26: 🔹 Have you checked your E-invoice applicability for FY 2025-26? (Turnover > ₹5 Cr) 🔹 Have you renewed your LUT for zero-rated supplies? 🔹 Have you implemented a new document series for invoices and GST records? Review of FY 2024-25: ✅ Input Tax Credit (ITC) & Reverse Charge Mechanism (RCM): 🔹 Have you reconciled ITC claims with GSTR-2B & books? 🔹Have you reconciled outward supplies with GSTR-1, GSTR-3B, E-way bills & books? 🔹 Have you reviewed ITC reversals under Rule 42 & 43? 🔹 Have you checked RCM applicability on expenses & imports? ✅ Other Key Compliances: 🔹 Have you claimed all GST TDS/TCS credits available on the portal? 🔹 Are you tracking job work materials to ensure compliance?...

  Non-compliance with the E-Way Bill system under the Goods and Services Tax (GST) law in India can lead to the following penalties and consequences: 1. Penalty for Non-Generation of E-Way Bill If an e-way bill is not generated as required: Fine or Penalty: The penalty is ₹10,000 or the amount of tax evaded (whichever is higher). The vehicle can be detained or seized until the penalty is paid. 2. Penalty for Incorrect Details If the details in the e-way bill are incorrect or mismatched, the authorities may: Impose a penalty. Detain the goods or vehicle for verification. 3. Confiscation of Goods and Vehicle If a consignment is transported without a valid e-way bill: The goods and the vehicle can be seized or confiscated by the authorities. To release the goods or vehicle, the owner may have to pay: Tax and penalty equal to 100% of the tax payable if the owner of the goods comes forward. 50% of the value of goods (excluding tax) or 200% of the tax payable if the owner d...

  Understanding Electronic Cash & Credit Ledger in GST 📊 Many accountants and business owners struggle with GST set-off rules and how to manage Input Tax Credit (ITC) effectively. This guide simplifies it with practical examples on how GST liability is settled using ITC and cash. Key takeaways from the post: ✅ ITC Utilization Rules – IGST credit must be used first before CGST & SGST. ✅ Handling RCM Liabilities – Reverse Charge Mechanism (RCM) payments need to be paid in cash. ✅ Late Fees & Interest – Cannot be adjusted using ITC and must be paid in cash.

 ### **Section 44AD: Presumptive Taxation Scheme for Small Businesses** Section 44AD of the Income-tax Act, 1961 provides a **presumptive taxation scheme** for small businesses to simplify compliance and reduce the burden of maintaining detailed books of accounts. --- ### **1. Applicability of Section 44AD** This section applies to: - **Eligible Assessees**:   - Resident **individuals**,   - **Hindu Undivided Families (HUFs)**, and   - **Partnership firms** (excluding LLPs). - **Eligible Businesses**:   - Any business (excluding plying, hiring, or leasing of goods carriages covered under Section 44AE and professionals covered under Section 44ADA).   - The total turnover or gross receipts of the business should **not exceed ₹3 crores** (from AY 2024-25, previously ₹2 crores). --- ### **2. Presumptive Income Computation** - The income is presumed to be **8%** of the total turnover or gross receipts. - If transactions are made via digital mode (banking channel...

  LEGALLY PAY ZERO TAX UP TO ₹2 CRORE TURNOVER! 🤯 Ever wondered how businesses and professionals can significantly reduce their tax burden—legally? 🎯 Let’s dive into the fascinating world of Presumptive Taxation under Sections 44AD & 44ADA and uncover how you can potentially pay ZERO tax on your earnings! 🚀 🔹 Section 44AD: Zero Tax for Businesses up to ₹2 Crore! ✅ Who Can Benefit? Resident Individuals, HUFs, and Partnership Firms (except LLPs) Businesses with turnover up to ₹2 crore (or even ₹3 crore if cash receipts are ≤ 5%)! ❌ Who is NOT Eligible? Commission or brokerage businesses Agency businesses Specified professionals under Section 44ADA Transport businesses (covered under Section 44AE) 🔢 How Is Taxable Income Calculated? 8% of total turnover (if cash transactions) 6% of total turnover (if digital transactions) 📋 Audit Requirement ✅ NO AUDIT needed if you declare profit as per the above rates! 📌 Audit required ONLY if declared profit is lower AND total income ex...

Understanding TDS on Import of Services: With or Without a Permanent Establishment (PE)? When making payments to foreign service providers, one critical question arises: Is TDS applicable? The answer depends on whether the non-resident has a Permanent Establishment (PE) in India. ✅ If the non-resident has a PE in India: The income is taxable in India, and TDS must be deducted at the applicable rate. Business income is taxed as per domestic tax rates (e.g., 40% for foreign companies), while Fees for Technical Services (FTS) and Royalty attract 10% TDS (subject to DTAA benefits). 🚫 If the non-resident does NOT have a PE in India: The income is generally not taxable in India, unless it falls under FTS or Royalty. In such cases, TDS at 10% applies unless a lower DTAA rate is available. If the service is provided entirely outside India and does not fall under these categories, no TDS is required. 💡 Key Compliance Requirements: ✔ Obtain a Tax Residency Certificate (TRC) to claim DTAA benef...

Form 15CA (Declaration of Foreign Remittance) It is a self-declaration form that a person or company must file before making a remittance to a non-resident. It ensures that applicable Tax Deducted at Source (TDS) has been deducted under the Income Tax Act, 1961. Filed online through the Income Tax e-filing portal. Form 15CB (Chartered Accountant’s Certification) It is a certificate issued by a Chartered Accountant (CA) confirming that the remittance complies with Indian tax laws. It verifies the applicable tax rate, nature of payment, and Double Taxation Avoidance Agreement (DTAA) applicability. Required when: The payment is taxable in India. The remittance amount exceeds ₹5 lakh. A CA certification is mandated under tax laws. When Do You Need Form 15CA & 15CB? 1. If remittance is taxable: Obtain Form 15CB from a CA. Then submit Form 15CA (Part C) on the Income Tax portal. 2. If remittance is not taxable & exceeds ₹5 lakh: Only Form 15CA (Part D) is required. ...

  The Income Tax Department just launched a game-changing feature on their e-Filing portal. They've introduced a fantastic new feature called "Request for Order Giving Effect" designed to streamline the implementation of pending orders. This means faster resolutions and no more frustrating visits to the department ! This digital-first approach empowers taxpayers to submit requests online, making the entire process more efficient and transparent. It's an excellent step towards modernizing tax administration and improving the taxpayer experience. Here's how it works: 1. Log in: Access the e-Filing portal with your user ID and password. 2. Navigate: Go to Pending Actions > e-Proceedings > Request for Order Giving Effect. 3. New Request: Click "New Request," fill in the assessment details, and submit. Benefits: - Faster Resolution: Get your orders processed quicker. - Convenience: Skip the in-person visits to the income tax department - Transpa...

  hashtag # Kerala_HighCourt settled the position in cases where Input Tax Credit (ITC) is claimed under wrong head by assessee !!!! In a recent decision, the Kerala High Court in the case of Maruthengal Moideen & ors vs State Tax Officer & ors [W.P.(C) No.20837 of 2024] has delivered a significant hashtag # judgment regarding the availment of ITC under GST Law. Key Takeaways: ✅ The ruling dealt with the alleged incorrect availment of hashtag # ITC under CGST and SGST instead of IGST. ✅The court referred a previous ruling (Rejimon Padickapparambil Alex v. Union of India), emphasizing that such a mix-up in ITC heads should not be seen as an incorrect ITC claim under GST law. ✅It was highlighted that the electronic credit hashtag # ledger functions like a pool of funds, ensuring no revenue loss occurs whether ITC is claimed under CGST, SGST, or IGST. Most importantly, the Hon'ble Court reaffirmed that a mere procedural error in availing ITC under wrong heads doe...