All about Indirect taxes

What is Indirect Tax?

These sorts of taxes paid on Consumption by the purchaser yet they don't pay specifically to the legislature (not at all like pay tax). For instance, we pay VAT and different taxes on obtaining an item.

Types of Indirect Taxes in India

Here are a few sorts of indirect taxes accessible in Indian Constitution Bill. We characterize underneath:

A. SALES TAX:

The tax that duties on the offers of merchandise. Union Government forces the business tax on the Inter State deal, while the deal tax on Intra-state deal is imposed by the State Government. This tax is partitioned into three sections as Inter-State Sale, Sale amid import/fare and Intra-State deal.

B. SERVICE TAX:

This tax is an indirect tax that taxpayers need to pay benefit tax on paid administrations. Paid administrations are phone, visit administrator, draftsman, inside decorator, publicizing, wellbeing focus, saving money and monetary administration, occasion administration, upkeep benefit, consultancy benefit. The Interest on the administration tax is 15%.

C. VALUE ADDED TAX:

This kind of tax is gathered by the state government. For a case, on the off chance that we buy a decent then we should pay an option tax as Value Added Tax to the administration. VAT rate is chosen in view of nature of thing and state.

D. CUSTOM DUTY AND OCTROI TAX:

This tax is exacted on those products that are foreign made into India from outside. The Custom Duty tax is paid at port of passage in the nation as the airplane terminal. This tax rate likewise shifts over the idea of products. While, the Octroi tax is charged on the products going into the district.

E. EXCISE DUTY:

This is additionally an indirect tax that tolls on the products which, are created inside the nation. This tax isn't identified with the Custom Duty. Extract Duty is otherwise called Central Value Added Tax.

F. GST

GOODS AND SERVICE TAX is the most aggressive tax administration in India and furthermore the most recent indirect tax presented in the Indian constitution. There are different types of GST which have been presented to be specific:

SGST (State GST) – The SGST will be taken care of by the state government in which all the taxes gathered under the state arrangement will go under the SGST

CGST (Center GST) – CGST is a focal GST which will be gathered by the focal government by virtue of each exchange having an interstate

IGST (Integrated GST) – Integrated GST will be charged at whatever point an exchange happens between two states with an offer of state and focus both with a predetermined extent chose

Mahaveer Singhvi & Associates offers expert help in dealing with all your business taxes, we also help you file your tax returns on time to avoid any penalties. For all your tax knowledge, visit our website at www.ca-msa.com

Four ways you can file your income tax

Too much last minute rush is the reason why one must not wait till the last date to file their tax returns. There have been cases where people were unable to pay their taxes, missing out because they waited till the very last day. Also, during all the hurry, your form filling could be error prone. If you haven’t done your income tax filing formalities, here’s how you do it.

On your own:

If your annual income was less than the amount set by the government and there weren’t any claims, you can file your income tax returns yourself. You can either do that online or physically by getting the form from the income tax office of their website. Don’t forget to take an acknowledgement that is stamped, when you file your tax returns physically.

Tax return preparers

Income tax department has appointed tax return preparers (TRPs) who assist people filing in their income tax returns. They are trained to file your returns for you. From the website, you can find the registered TRPs in your area with their contact details. Based on the amount of tax yu are paying, they are paid by the compensation on each return filed. The higher your tax amount, the higher their compensation. If you are using this method, ensure that you have your TRPs details and counter signature on the ITR form.

E-filing smartphone applications

With advancement in technology, it is now possible to file your returns through mobile phone. All you need is a smartphone and internet. There are mobile apps for filing returns. As of now, most of these apps have the provision to file only ITR-1 or returns that are from salary and interest. Refund status check and tax calculator are also available on this app. Most of these services are free as well.

Chartered accountants

Self-filing can be a hassle if there are tax audits, complexity and multiple income sources (and deductions) are involved.  In such a case it is advised that you must consult a chartered accountant. Their charges will vary with respect to the income source and how complex the return filing is. Higher the complexity, the higher the charge. There are online portals as well that will get you in touch with a CA on the phone, at a third of the price.

Income tax filing is not a complex process and one must do it well in advance to avoid the last minute rush. Filing taxes does not have to be as scary as it is made out to be. Let our experts offer professional help in filing your income taxes on time. To know more about our services, do visit our website http://www.ca-msa.com/

AUDITING- GET INSPECTED!

Auditing is a systematic examination of accounts and records of an organization to calculate its financial statements along with non-financial disclosures.

It ensures to keep the accounts and records of the company properly maintained abiding by the laws of the government. Every system, projects and organizations are necessarily required to be inspected for their legality by experts known as auditors.

They inspect all the internal operations of an organization, business and companies. They utilize different procedures to keep in check the genuineness and reasonability of the company. Auditing scrutinizes financial activities causing irregularity in one’s business.

CA firms are expert in resolving company matters thoroughly through their professional chartered accountants. They offer many different kinds of auditing services namely;

Financial auditing services: There are a lot of diverse financial statements of the company or an organization that involves balance sheet of company by parties they deal with. Hence, auditing is done to establish an independent and upright opinion whether the financial statements, accounts, and bills are accurate. They need to be completed on time and presented accurately.

Internal audit: Very large business operations require a thorough check of all day to day transactions happening in their company. To keep a daily check on such transactions an internal audit is required. These services are also provided by CA firms. They greatly access and evaluate the internal control of the business organization. They ensure value addition and improvement to different company operations. This type of auditing is done to eliminate accidental or intentional accounting errors and omissions which in turn boost up the strength of internal systems of the company.

Tax audit: It is a background check of tax returns that are submitted by the business to a tax agency. This kind of audit is highly recommended to discourage tax avoidance.

Special investigative audit service: This service helps organizations in marking the areas where fraud and financial impropriety may occur. CA firms assist these company and organizations to detect frauds and prevent them by getting misguided.

Operational efficiency audit service: In many big organizations and companies there are quite a few numbers of projects that require huge investments. This service ensures that all the operational resources are used for generating maximum outputs. They also keep in check the performance of the company and its quantity of waste in the company.

Mahaveer Singhvi and Associates provide wide range of services. For more details, do visit our website at http://www.ca-msa.com/

A brief understanding about Indirect taxes

An indirect tax is a tax that is paid to the government by one entity in the supply chain, but it is passed on to the consumer as part of the price of a good or service. The consumer is ultimately paying the tax by paying more for the product.

An indirect tax may increase the price of a good to raise the price of the products for the consumers. Examples would be fuel, liquor, and cigarette taxes. An excise duty on motor cars is paid in the first instance by the manufacturer of the cars; ultimately, the manufacturer transfers the burden of this duty to the buyer of the car in the form of a higher price.

A brief understanding about Indirect taxes

The most common example if an indirect tax is import duties. The duty is paid by the importer of a good at the time it enters the country. If the importer goes on to resell the good to a consumer, the cost of the duty in effect is hidden in the price that the consumer pays. The consumer is likely to be unaware of this, but he will nonetheless be indirectly paying the import duty.

Essentially, any tax or fees imposed by the government at the manufacturing or production level is an indirect tax.

What are the features of Indirect tax?

Indirect taxation is policy commonly used to generate tax revenue. Indirect tax is so called as it is paid indirectly by the final consumer of goods and services while paying for purchase of goods or for enjoying services. It is broadly based since it is applied to everyone in the society whether rich or poor.

What is excise duty?

Excise duty is a governmental tax meant for producers and manufacturers on certain goods.

Manufacturers are considered to be:

• ·        Entities that manufacture goods themselves.
• ·        Entities that outsource manufacturing, but manufacturing takes place from their name

To cover these costs, manufacturer adds them to cost of goods sold, where the buyer ends up paying for these costs. Thus, it is considered to be an indirect tax.

Advantages

They are convenient to both the tax-payer and the State. The tax-payers do not feel the burden much, partly because an indirect tax is paid in small amounts and partly because it is paid only when making purchases. But the convenience is even greater due to the fact that the tax is "price-coated". Indirect taxes can be spread over a wide range. Very heavy direct taxation at just one point may produce harmful effects on social and economic life. As indirect taxes can be spread widely, they are more beneficial and suitable.

Mahaveer Singhvi and Associates provides wide range of services. For more details, do visit our website at http://www.ca-msa.com/

WHAT IS INCORPORATION?

Incorporation is the legal process used to form a corporate entity or company. A corporation is a separate legal entity from its owners, with its own rights and obligations. Corporations can be created in nearly all countries in the world and are usually identified as such by the use of terms such as "Inc." or "Limited" in their names.

Creation and Organization of Corporations

Incorporation involves drafting legal documents called "Articles of Incorporation" that list the primary purpose of the business, its name and its location, and the number of shares and class of stock being issued, if any. Incorporation also involves jurisdiction-specific registration information and fees.

Why one needs to incorporate their business?

Once you incorporate your business, you will help your organization to develop by creating a line, which will determine who has the rights to make the final decisions.

Furthermore, when a person incorporates his business, he is making a brand new entity, which assist in creating the line which separates the personal finances and the business finances. When you finally incorporate your business, all of the employees in your company will have protection in case something catastrophic happens regarding your financial situation.

Through company incorporation involving a pty limited company, one produce stocks which investors can buy hoping that the stock’s value will get bigger and in the meantime one would accomplish company success. The company incorporation will let the investors buy and sell stocks leaving the investment responsibility in the possession of stock investors.

Advantages of Incorporation

Incorporation has many advantages for a business and its owners, including protection of the owner's assets, because the company is liable for its own debts. It includes easy transfer of the business ownership to another party through the sale of shares.

·    Protect Your Personal Assets: Incorporating your business is one of the best ways you can protect your personal assets. A corporation can own property, carry on business and incur liabilities

·  Have Easier Access to Capital: Raising capital is generally easier for a corporation, since a corporation can issue shares of stock. This may make it easier for your business to grow and develop. In most cases, banks would rather lend money to corporations than to unincorporated business ventures. Corporations generally have access to more alternative sources of capital through which they can pay off their debts.

·   Enhance Your Business’ Credibility: The benefits of incorporating go beyond finances. In a sense, having “Inc.” or “Corp.” after your business name conveys permanence, credibility, and stability, and communicates your commitment to the ongoing success of your business venture.

MAHAVEER SINGHVI & ASSOCIATES provide wide range of services. For more details, visit our website at http://www.ca-msa.com/

How demonetization will affect loans and investments

The scraping of the Rs. 1000 and Rs. 500 notes on November 8^th 2016 has lead to widespread confusion among the masses. This demonetization has gained a highly polarizing response. Apart from the ones with hoards of black money, how has this move affected common people with investments and loans to pay off? Here are some insights on the issues.

Mutual funds

Mutual Funds are deemed to be beneficial in the long run. The scraping of the notes will lead to banks reducing the interest rates for fixed deposits. Thus we will see a gradual shift towards Mutual Funds, which offers a much better returns. With interest rates falling, debt mutual funds are expected to do well in this economy, and this trend will continue for a while. Also with stock markets rapidly falling due to demonetization, you can invest in god equity mutual funds are low prices, and reap benefits in the future.

Bank FD

If you are someone who has parked a majority of your money in Bank FDs then you have bad news. Bank FD rates are expected to go down, since many people are flocking to deposit their money in denominations of Rs 500 and Rs 1000 in the banks. Since Banks are getting a heavy cash inflow due to deposits, they do not have to depend on interest rates from loans, thus they can afford to reduce interest rates on FDs. If you fall in a higher tax bracket, then investing in tax free bonds, which gives you 6% returns with no lock-in period is your best bet, since the interest you earn through this is not taxed, unlike FDs.

Car loans and home loans

These are all set to fall. Again, since people are queuing up to deposit their money in their savings accounts, these make up the low cost deposits. Hence, banks can afford to give out loans at significantly lower rates. If you are planning on buying a new car or a home, this would be a great time.

If you are confused about how this demonetization will affect your taxes and billings this year, you can contact us for expert services. Our professional CAs at Mahaveer and Singhvi Associates will ensure that your money matters are handled with care. Please contact our website at http://www.ca-msa.com/

Why you need a professional CA?

           A Chartered Accountant is a professional who has finished the Chartered Accountants Program and has been inducted as a professional. This professional course requires immense dedication and hard work also with a minimum three years of article ship where the prospective CA learns under the mentor-ship of a credible Chartered Accountant.

          The primary job of a chartered accountant is to provide a credible accountancy services by overseeing all the financial operations of an organization. The training and immense experience before their professional induction helps prove their mettle in solving real world problems.

          Chartered Accountants work closely with your company to ensure that your accounting is top notch, and that your tax requirements are met. These services are immensely valuable for smaller businesses, which does not have a dedicated accounts department. A CA will help you make sense of all your accounts and will help file taxes and keep your records straight.

          Even with a dedicated accounts department in place, having a CA on hand will help iron out any discrepancies and confusions. Hiring such a consultant will ensure that your business is running on the right track without having to worry about the gritty details.

          At Mahaveer Singhvi & Associates we offer viable accounting solutions for our clients. For more information about our services, do visit our website at http://www.ca-msa.com/services.html