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PROFESSIONAL TAX

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					TIPS TO BE AN EFFECTIVE ACCOUNTANT




           CA CHANDRESH CHHEDA
                THURSDAY 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.




               CA CHANDRESH CHHEDA      2
      BUT
 This is not enough for being an effective accountant…



                     CA CHANDRESH CHHEDA              3
  ADDITIONAL RESPONSIBILITIES
COMPLIANCE REQUIREMENTS
UTMOST USE OF INFORMATION TECHNOLOGY
FOCUS ON RISK MANAGEMENT & INTERNAL
 CONTROL




              CA CHANDRESH CHHEDA       4
    COMPLIANCE REQUIREMENT
 Income Tax (TDS Provisions)
Vat
Service Tax
Excise
Professional Tax
PF
ESIC

                 CA CHANDRESH CHHEDA   5
        INCOME TAX-TDS PROVISIONS
                                   TDS RATE FOR F.Y. 2011-12
Nature of payment made to Resident                    Threshold   Co/firm Indiv &         If NO/
                                                                  , co-op HUF             Invalid
                                                                  soc, L.A                PAN
Sec      Description                                              Rate        Rate        Rate
194A     Interest-payable by banks                       10,000          10          10          20
         Interest-payable by others                       5,000          10          10          20
194B     Wining from lotteries/crossword                 10,000          30          30          30
194C     Payment to contractor-single transaction        30,000          2           1           20
         Payment to contractor- Aggregate during FY
                                                         75,000          2           1           20
194D     Insurance commission                            20,000          10          10          20
194H     Commission/brokerage                             5,000          10          10          20
194 I    Rent                                          1,80,000          10          10          20
         Rent-Plant/Machinery                          1,80,000           2           2          20
                                     CA CHANDRESH CHHEDA                                         6
Nature of payment made to Resident         Threshold Co/firm,   Indiv &        If NO/
                                                     co-op soc, HUF            Invalid
                                                     L.A                       PAN
Sec      Description                                   Rate        Rate        Rate
194J     Professional Fees                    30,000          10          10             20
194      Dividends other than dividend         2,500          10          10             20
         covered by sec 115-0
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       • where income or amount is paid or credited in the
other than Govt officer        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.

                                    CA CHANDRESH CHHEDA                                   7
                        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.




                                 CA CHANDRESH CHHEDA                               8
                            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.




                               CA CHANDRESH CHHEDA                                 9
   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.)
                     CA CHANDRESH CHHEDA                10
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

                  CA CHANDRESH CHHEDA          11
             SERVICE TAX COMPLIANCE
PAYMENT OF SERVICE TAX
    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           5th January
    December
    January to march     31st march

 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
.                                   CA CHANDRESH CHHEDA                                  12
          FILING OF ST-3 RETURNS
W.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




                      CA CHANDRESH CHHEDA    13
       EXCISE DUTY: PERIODICAL RETURNS
Form     Description                         Who is require to file           Time limit
ER-1     Monthly return by large units       Manufacturers not eligible for   10th of following mth.
                                             SSI concession
ER-2     Return by EOU                       EOU units                        10th of following mth.
ER-3     Quarterly return by SSI             Assesses availing SSI            20th of following qtr.
                                             concession
ER-4     Annual financial information        Assesses paying duty of Rs.      Annually, by 30th Nov. of
         statement                           One crore or more per annum      succeeding year.
                                             through PLA .
ER-5     Information relating to principal   Assesses paying duty of Rs.      Annually, by 30th
         inputs                              One crore or more per annum      April of current year.
                                             through PLA and
                                             manufacturing goods under
                                             specified tariff heading
ER-6     Monthly return of receipts &        Assesses who is required to      10th of following month
         consumption of each of              submit ER-5 return
         Principal Inputs
ER-7     Annual Install capacity             All assessee                     Annually on or before
         statement                    CA CHANDRESH CHHEDA                     30th April.        14
                     PROFESSIONAL TAX
  Professional tax is to be paid by 30th sept. of relevant FY to
   local authorities by businessmen on the following bases:


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
  Professionals
Turnover above 10 lacs                  @
                         have to pay PT2400 Rs.2000 pa.




                                  CA CHANDRESH CHHEDA                    15
   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




                                      CA CHANDRESH CHHEDA                 16
              PF, ESIC COMPLIANCE
Type   Description                                     Responsibility
       Contribution
PF     12% of Baisc+DA                                 Employee
PF     12% of Baisc+DA                                 Employer
       Of which 8.33% or Max Rs.541 for Pension Fund
ESIC   1.75% of Wages                                  Employee
ESIC   4.75% of Wages                                  Employer
       Admin charges
PF     1.1% of Basic+DA                                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.
                        CA CHANDRESH CHHEDA                             17
    UTMOST USE OF INFORMATION
          TECHNOLOGY

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




                    CA CHANDRESH CHHEDA      18
   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.)




                CA CHANDRESH CHHEDA      19
 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. )

                     CA CHANDRESH CHHEDA          20
Thank you




 CA CHANDRESH CHHEDA   21

				
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