Category Archives: Managerial Finance

Inclusion Of Anti Profiteering Clause

Anti-profiteering means to stop a person from earning unreasonable profit through sale of goods and services It mandates a manufacturer and others in the supply of chain to pass on the benefits arising out to input credit and lower taxes to consumers at the pain of penalty. The main intention is to protect consumers from inflation after GST implementation.

MAIN REASONS FOR ANTI-PROFITEERING CLAUSE

There are three main reasons which make this clause necessary is

To set up honest pricing policy, this will help to retain consumers in the GST regime.
To examine whether input tax credits or lower tax rates actually result in a commensurate reduction in price.
To observe the inflationary trends during the initial stages of GST introduction and to analyze and control its long-term effects.

FEATURES OF ANTI-PROFITEERING CLAUSE

A state wise single registration for a taxpayer for filing returns, paying taxes and to fulfill other compliance requirements.
(Most of the compliance requirements would be fulfilled through online)
A taxpayer has to file one single return state wise to report all his supplies, whether made within or outside the state or exported out of the country and pay the applicable taxes on them. (CGST, SGST, IGST etc.)
A business entity with an annual turnover of up to Rs 20 lakh would not be required to take registration in the GST regime, unless it voluntarily chooses to do so to be a part of the input tax credit (ITC) chain.
In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course of business except on a few items listed in the law.
In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State law, it has been provided that the ITC entitlement arising out of taxes paid under the central law can be cross utilized for payment of taxes under the laws of the states or union territories.
Detailed transitional provisions have been provided to ensure migration of existing taxpayers and seamless transfer of unutilized ITC in the GST regime.
In order to mitigate any financial hardship being suffered by a taxpayer, commissioner has been empowered to allow payment of taxes in installments.
To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.

Strange Tax For Expats And Locals

Expats have a dream of living in a new country under that country’s local laws. This dream can be achieved by those who work hard enough to get there. This dream also has a down side: taxes. Each country that you reside in will have its own set of taxes to abide by. The country you leave, such as the United States, will also still impose tax laws that you must follow. Just because you leave a country or even abide in another as a foreigner, it does not mean that you can ignore the taxes and the implications around them. It is important that you are very familiar with the regulation tax for expat requirements, or that you are working with somebody who is.

Window Tax

In 1966, England imposed a window tax. Home owners were taxed according to how many windows their home had. This tax would have been an applicable tax for citizens as well as an applicable tax for expats. The more windows, the greater the tax bill. As citizens always do, they found a way to lower their taxes. They covered up their windows. While this did reduce their tax bill, it created another problem. The lack of light and circulation began to have a negative effect on their health. As the population’s health declined, protesters began to speak up. Finally, in 1851, this tax law was abolished.

The Width of your House Tax

Property taxes are a well-known tax. Property tax for expats is expected and often uncontested. What is less known is a tax that existed prior to this in Amsterdam. Before square footage became a calculation for taxes, Amsterdam taxed their citizens’ homes by the width along the canal. The wider the faade of your home, the higher your taxes. As usual, the citizens found a way to get around this tax. Build a narrower home. This allowed them to still live along the canal, but to pay much less in taxes. Because of this historic law, Amsterdam’s narrow homes have become a world famous tourist attraction�”but few knew how they came to be this way.

Age Pays Off in New Mexico

If you live past the age of 100 in New Mexico, you become exempt from paying income tax. This is a nice break for those who have managed to live a long life. When researching tax for expats, this law is one that is well worth looking into. We all know that life is full of bills and expenses, and this is one welcomed break for those that hang around long enough to earn it.

indirect tax system

The current indirect taxation system comprising service tax, state vat and central sales tax(CST) is not geared up to recognize and accommodate the evolving business models of e-commerce. But there are no specific provisions for the e-commerce operators to pay taxes on sale of goods or to make any deductions from the payments being made by them to actual seller of the goods.
A return is a document that a taxpayer is required to file as per the law with the tax administrative authorities. Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an input service Distributor, a person liable to deduct or collect the tax (TDS/TCS)
TYPES OF RETURNS
GSTR-1 (Registered taxable supplier)
– Details of outward supplies of taxable goods and/or services effected.
– 10th of the next month
GSTR-2 (Registered taxable recipient)
– Details of inward supplies of taxable goods and/or services effected claiming input tax credit.
– 15th of the next month
GSTR-3 (Registered taxable person)
– Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.
– 20th of the next month
GSTR-4 (Composition supplier)
-Quarterly return for compounding taxable person
-18th of the month succeeding quarter
GSTR-5 (Non-Resident Taxable Person)
– Return for non-resident foreign taxable person
– 20th of the next month
GSTR-6 (Input Service Distributor)
– Return for input service Distributor
– 13th of the next month
GSTR-7 (Tax Deductor)
– Return for authorities deducting tax at source.
– 10th of the next month
GSTR-8 (E-Commerce operator/Tax collector)
– Details of supplies effected through e-commerce operator and the amount of tax collected
– 10th of the next month
GSTR-9 (Registered Taxable Person)
– Annual Return
– 31st December of next financial year
GSTR-10 (Taxable person whose registration has been surrendered or cancelled)
– Final Return
– within three month of the date of cancellation or date of cancellation order, whichever is later.
GSTR-11 (Person having UIN and claiming refund)
– Details of inward supplies to be furnished by a person having UIN
– 28th of the month following the month for which statement is filed.

technology and quality upgradation support

It aims to improve the production quality of MSMEs to encourage them to adopt global manufacturing standards.
The main aim of this scheme is to sensitize the manufacturing MSME sector to make use of energy sufficient technologies
And also the manufacturing processes to reduce manufacturing cost and emissions of harmful gasses that can hamper the environment
The Indian government provides financial support to the extent of 75% of the actual expenditure to assist manufacturing sector purchase energy efficient technologies for production.

MINI TOOLS ROOM AND TRAINING CENTRE SCHEME

The mission of this scheme is to develop more tool room facilities to provide technological support to the MSMEs
The training in tool manufacturing and tool design to create a skilled workforce of workers, supervisors, engineers/designers.
90% of the cost of machinery/equipment in case a new Mini tool room is to be created.
In case an existing room to be upgraded � 75% of the cost is funded.

MUDRA LOAN (Micro Units Development and Refinance Agency Ltd.)

The vision of Funding the Unfunded.
It is established by Government of India for development and refinancing activities relating to micro units.
It provides low cost funding for MFI (Micro Finance Institutes)
It also supporting to the institutions , societies, trusts section 8 companies, co-operative societies, small Banks, Scheduled commercial Banks and Rural Banks which are in the business of lending to micro or small business etc.

How To Protect Your Identity And Assets

Understand How Tax Fraud Happens

Dishonest individuals may steal taxpayers’ personal and financial information from sources outside the IRS, such as social media accounts where people tend to share too many details or bogus phishing emails that appear to come from the IRS or a bank. Once they obtain an unsuspecting taxpayer’s data, thieves may use it to file fraudulent federal and state income tax returns, claiming significant refunds.

Paperless e-filing facilitates these scams: Thieves submit returns electronically, based on falsified earnings, and receive refunds via mail or direct deposit. Sure, the IRS maintains records of wages and other types of taxable income reported by employers, but they don’t usually match these records to the information submitted electronically before issuing refund checks. By the time the IRS notifies a victim that it’s received another tax return in his or her name, the thief is long gone and has already cashed the refund check.

In addition to refund fraud, thieves may use stolen personal information to access existing bank accounts and withdraw funds �” or open new ones without the taxpayer’s knowledge. Criminals are becoming increasingly sophisticated and their ploys more complex, making identity theft harder to detect.

Recognize the Warning Signs

Taxpayers are the first line of defense against these scams. The IRS lists the following warning signs of tax-related identity theft:

Your electronic tax return is rejected. When the IRS rejects your tax return, it could mean that someone else has filed a fraudulent return using your Social Security number. Before jumping to conclusions, first check that the information entered on the tax return is correct. Were any numbers transposed? Did your college-age dependent claim a personal exemption on his or her tax return?

You’re asked to verify information on your tax return. The IRS holds suspicious tax returns and then sends letters to those taxpayers, asking them to verify certain information. This is especially likely to happen if you claim the Earned Income tax credit or the Additional Child tax credit, both of which have been targeted in refund frauds in previous tax years. If you didn’t file the tax return in question, it could mean that someone else has filed a fraudulent return using your Social Security number.

You receive tax forms from an unknown employer. Watch out if you receive income information, such as a W-2 or 1099 form, from a company that you didn’t do work for in 2016. Someone else may be using the phony forms to claim a fraudulent refund.

You receive a tax refund or transcript that you didn’t ask for. Identity thieves may test the validity of stolen personal information by sending paper refunds to your address, direct depositing refunds to your bank or requesting a transcript from the IRS. If these tests work, they may file a fraudulent return with your stolen data in the future.

You receive a mysterious prepaid debit card. Identity thieves sometimes use your name and address to create an account for a reloadable prepaid debit card that they later use to collect a fraudulent electronic refund.

6 Ingenious Ways To Organize Your Small Business

Staying organized seems easier with plenty of money & volume of employees but what about the small business who are running out of both? That’s true! Every one of us had been started as a small startup and raised our business to a massive level. But what are the major strategies that followed by businesses to transform into huge-enterprises?

Proper organization & keen planning are two big things that normally have been followed by each highly ranked business. The pain of handling all activities on your own is not hidden to any, but the relief of having an organized business can be acknowledged by each person effortlessly. Are you lagging in the business growth game even after using all the tools? Don’t worry. These below mentioned seven ingenious ways will definitely help you to stay organized in 2018.

1. Say Hello To Cloud, Go Paperless

Most of the Startups don’t actually deal with volumes of documents but it is better to stay away from clutter and work digitally. cloud based quickbooks is one of the most renowned accounting software, powered and designed by Intuit, of today’s era which is simplifying data related tasks for millions of SMBs. Keeping balance sheets and reports over excel alike software were old talks, businesses nowadays are falling rapidly for accounting software that will organize reports, bookkeeping, invoices, Payroll etc. on a single place and reduces the use of paper within business premises.

2. Decrease Your Issues, Increase Business Productivity

It is equally important, to claim that business growth, to forecast alike environment within the business that supports your vision of growth. The engaging of QuickBooks software actually helps you to lower your daily hassles that fetched while working on-site. Including with, hosting QuickBooks on a server of the third party allows your business to have a 24*7 backend support. Any business with no worry of technical issues do perform better than others who aren’t engaged with the same support.

3. Track Upcoming Tasks In The Cloud

Usually, it sounds quite hectic to remember all the work that you need to do in the coming time. Using cloud computing QuickBooks is yet another ease any business can avail effortlessly. Tracking of data files & remembering due payment dates will be nothing to worry about after allowing QuickBooks accounting software. The issue of offering lots of time in scheduling events, dues & tasks will be not there in the year 2018 anymore.

4. Manage Business Working Space & Storage

It is equally important to manage your office’s physical space even if you’re integrated over the cloud computing network. The best approach to arrange things vertically in the office space. Though most of the businesses are now dealing with less paperwork as they’ve working digitally now. Mitigating data to cloud helps SMBs to save the expenses of having on-site resources as all the cloud-stored data can be accessible to as many members as required. Using proper space & storage management, businesses can efficiently organize their small start to gain more of what they are inputting.

5. Precisely Plan For Your Quarterly Taxes

It is vital for business persons to be compliance with tax regulations 2018 that will be revealed soon by respective authorities. The QuickBooks software helps SMBs to acknowledge all the needed information right on their dashboard. Organizing your tax is yet another vital task to be an organized business claiming for growth. Pre-planning of your quarterly taxes saves you from the penalty and helps you to know the deductions over tax.

6. Manage & Free Space In Your Inbox

If your business email inbox is overflowing then, it is better to filter the important emails first and delete the rest ones. As full inbox doesn’t allow new emails to arrive and many times it could be dangerous for businesses. Another main reason for having empty and full read inbox is that you’ll concentrate on useful bundles of emails and stay away from irritation while working.

Basic Advice & Guidance

Capital allowances’ is the term used to describe the allowances which allow businesses to secure tax relief for certain capital expenditure. Most capital’ items, such as computer equipment, vehicles, machinery etc last for more than a year or so. The tax rules do not allow you to automatically deduct the full cost of such items in one go. And different rules apply to different types of capital expenditure. In some cases no tax relief is available at all even though you may have spent the money solely for business purposes.

Corporation Tax Self Assessment for private GP Practitioners
Corporation Tax typically applies to profits made by limited companies, members’ clubs and to trade and housing associations.
Tax Rates:
FY 2016: 20% FY 2017: 19%

Submissions:
The submission must include the company’s Self Assessment return alongside details of any trade and other losses such as capital losses.
A company has a right to amend its return, including the Self Assessment within 12 months from the statutory filing date.

Keeping Records
The background records that must be kept include but are not limited to the following details of the company’s:
‘capital expenditure’ such as the purchase and sale or disposal of company assets, equipment, office furniture and vehicles;
liabilities (money it is due to pay people and other businesses);
income and expenditure (e.g.: sales and purchases);
stock, if any, on hand at the end of each financial year;
receipts and expenses;
all relevant supporting documentation.

Ways in which to keep tax bills to a minimum & better understanding of business expenses

Income Tax
Income Tax is a tax paid on taxable income received by individuals including:
Earnings from employment
Earnings from self-employment
Pensions income
Interest on most savings
Dividend income
Rental income
Trust income