GST Advisory India
GST advisory services India focus on the overall tax performance of a business. It develops a strategic approach in areas such as stock transfers, an input tax credit, refunds, valuation, classification, export benefits and so on.
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Goods and Services Tax India
The Government of India has implemented an indirect tax, namely GST from 1st July 2017 on most domestic goods and services. The seller reduces the GST on the product and then forward the same to the Government. So, we can say GST is one tax, one nation and it is providing revenue to the government. GST is India’s first major sweeping tax reform in decades. This regime has rationalised tax collection and simplified compliance procedures to a great extent. Businesses that once had to register for a wide range of taxes, i.e., VAT, Excise Duty, Service Tax, CST, Octroi, Luxury Tax and Entertainment Tax, -- now only require a GST registration. GST is strictly an Indirect tax applied to the cost of certain goods and services while Income tax comes under Direct tax. This value-added tax is levied on all goods and service providers in the domestic market. However, not all businesses require a registration. Any business offering sale of goods with annual turnover of Rs 40 lacs or service with annual turnover of 20 lacs would require the registration for GST and have a valid GST Number. Remember that the GST is levied on supply, not sales. Therefore, stock-taking, discounts and freebies also come under the GST net. Businesses selling to other states must register for GST, regardless of turnover.
Features of GST Registration
GST is a comprehensive, value added indirect tax on goods and services, which has made India a unified market.
Some of the key features of GST are:
1.Dual tax structure:
There is a centre and state tax levied for every supply of goods and services and these are termed Centre GST (CGST) and State GST (SGST), respectively
2. IGST on inter-state supplies:
Integrated GST (IGST) on inter-state supplies where the revenue is shared by both the Centre and the Consumption state.
3. Supply between two establishments of same legal entity taxable:
The supply of goods between the agent and the principal are taxable. The “gifts” given by employers to employees exceedding INR 50,000 are taxable.
4. Imports and exports:
All imports are treated as inter-state supplies and do attract IGST. all exports are zero rated.
5. Tax administration:
An online system for tax, however, there are GST Facilitation centres, GSPs, ASPs that assist taxpayers in filing the returns, registrations, etc.
The GST regime offers reduced tax liabilities to businesses under the composition scheme. These businesses must have a supply turnover of under Rs. 50 lakh, and will also not be able to avail of input-credit. This scheme will not, however, apply to the service industry or to businesses making inter-state sales.
How to register on www.gst.gov.in?
This must be done on GST portal gst.gov.in. It is a simple 11-step process
What is GST Registration?
GST refers to Goods and Services Tax which subsumes all taxes such as Sales tax, Service tax, Excise duty etc. into GST.
GST registration is required primarily if your annual sales are more than Rs. 20 Lakh. Even if your sales are less than Rs. 20 Lakh, we suggest that you voluntarily opt for GST registration because:
– You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 28% – you will lose tax refund of Rs. 28,000).
– You cannot sell outside your state
– GST registration typically takes between 2-6 working days. You need to file your application with the department and sign it with your digital signature.
At Bharatregister, the payroll process can be split into three stages;
- Pre-payroll: During the pre-payroll, the dedicated relationship manager gathers inputs like the type of business, the number of workers in the organization, the industry, and other details of the company. Next, our payroll officer will define the payroll policy with respect to designing the CTC structure and the mandatory labour compliances for your business.
- Actual payroll: The actual payroll process is where the salaries of employees are computed and processed.
- Post payroll: In this stage, all the statutory deductions like IT (income tax), EPF (employee provident fund), TDS (tax deducted at source), ESI (Employees' State Insurance) are deducted, and contributions and reimbursements are taken care of. Also, employee tax liabilities are calculated based on the latest tax slabs as applicable for the individual. Once the process is completed, we will send the investment declaration form to company employees as per the conditions under the IT (income tax) Act. Finally, the pay statements will be generated and shared.
- Generally, the payroll period is from 1st to 30th/31st of every month. Hence, we will collect data at least 5 days prior to the end of the month (i.e., by 26th).
Statutory deductions are P IT (income tax), EPF (employee provident fund), TDS (tax deducted at source), ESI (Employees' State Insurance) which are deducted according to the individual’s annual compensation and the state legislations.
An allowance is a fixed sum that a company may decide to pay its employees to cover additional expenses. For example travel allowance, overtime allowance, medical allowance, etc. All financial benefits that employer offers under the head “salaries” are taxable. Certain allowances are partially or fully exempted. Reimbursements are the amounts that a company pays back to its employees who may incur business-related expenses. For instance, many companies provide medical reimbursements where employees can claim the amount by presenting appropriate bills and proof of expenditure.