Compliances
Compliances are the act of complying with the rules and regulations set by the Government for a business or industry. In business, compliance is essential as it prevents negative exposure, avoids lawsuits, improves your bottom mine, and retains staff, amongst other things. With Groom Tax you can maintain your business and operate ethically. We help you with a multitude of things, whether it’s Accounting Services or ITR filing, or it TDS, we comply with every compliant that your business would need.
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Accounting Services
The Accounting service involves maintenance of books of accounts on periodical basis as per requirements of the client. We maintain the books of accounts online by using software like Tally, Quick-book and other cloud-based software’s as per applicable Indian Rules & Regulations. We have sufficient team to maintain the books of accounts on the basis of specific business requirements of the client. First, we devote our time to understand how the business being conducted by the clients and accounting requirement of the clients and accordingly, we prepare accounting system so that in due course of time the client don’t need to spare time fir review of accounting records and can focus only on its core operation activities.
Outsourcing of Accounting Function now has come us as a very productive and cost-efficient strategy for businesses all over the world because setting up of inhouse accounts department is very costly affairs as compared to the outsourcing. In India, with our expert Accounting Outsourcing Solutions, we have an experience in providing Accounting Bookkeeping Services, which is directly evident in the quality we deliver. Our main emphasis remains on dedicated team for clients, commitment for timely completion and accountability for quality of work, which are the main reasons of our growth at a faster pace on year-to-year basis.
We provide accounting/Book-keeping Services on the basis of requirement of the client on weekly, fortnightly, monthly, quarterly or yearly basis. Our Services covers all types of accounting or book-keeping including: -
- Recording of all transactions of Sales, Purchases, Journal, and other adjustment and closing entries.
- Assets accounting with fixed assets register.
- Accounts payables including overdue liabilities.
- Accounts receivables and aging analysis.
- Preparation of general ledger and subsidiary ledgers
- Bank reconciliation
- Trial balance
- Balance-sheet
- Income statement (Profit & Loss)
- Cash flow statement
- Preparation of Annual Financial statements
- MIS reports on the basis of requirements
- Preparation of various reports required for compliance under applicable Rules & Regulations such as GST/TDS etc.
Benefits of outsourced Book-Keeping Services:
- Simultaneous tax compliances
- Economical
- Managed by Professional team
- Authenticated accounting data and reports
Accounting Partners
Income Tax Returns
ITR is a prescribed income tax return form in which the details of income earned under different heads in a financial year and taxes paid on such income are sent to the Income-tax Department. By fling the ITR, the assessee can claim refund or carry forward the losses. There are different ITR forms for different assesses or nature of income earned. The return forms prescribed under the Income-tax for filing of return of income are as follows:
| Return Form | Brief Description |
|---|---|
| ITR - 1 | Also known as SAHAJ and applicable to an individual having from salary or pension or from one house property or income from other sources. |
| ITR - 2 | It is applicable to an individual or an HUF not having income from business or profession” |
| ITR - 3 | It is applicable to an individual or a HUF who has income from business or profession |
| ITR - 4 | Also known as SUGAM and applicable to individuals or HUF or partnership firm who have opted for the presumptive taxation under section 44AD/ 44ADA/44AE. |
| ITR - 5 | This Form can be filed by any person being a firm, LLP, AOP, BOI, artificial juridical person, cooperative society and local authority except trusts, political parties, institutions, colleges etc. |
| ITR - 6 | It is applicable to a company other than charitable/religious trust. |
| ITR - 7 | It is applicable to a person’s being trusts, political parties, institutions, colleges etc |
| ITR - V | It is the acknowledgement of the return of income. |
Different types of ways to file the return of income.
The Income tax returns can be filed with the Income-tax Department in the following ways,
- paper form;
- electronically under digital signature;
- electronically under electronic verification code;
- electronically and thereafter submitting the acknowledgement of the return with 120 days to CPC, Bangalore.
Benefit of filing the return of income
Income tax return act as an income proof and validate your credit worthiness for all types for financing needs from banks or financials institution and without income tax return, you will not be eligible to get any loans from banks.
Due date to file the return of income
| Sr. No. | Status of the taxpayer | Due date |
|---|---|---|
| 1 | Any company who not covered under international transfer pricing. | October 31 of the assessment year |
| 2 | Any person who covered under international transfer pricing. | November 30 of the assessment year |
| 3 | Any person who covered under income tax audit. | October 31 of the assessment year |
| 4 | A working partner of a firm which covered under income tax audit. | October 31 of the assessment year |
| 5 | Any other assessee | July 31 of the assessment year |
GST Return
The basic features of the return system in GST includes electronic filing of returns, filling of invoice-wise data in GSTR-1 which got auto populated on the receiver GSTN in GSTR-2A and 2B and filing summary details of all outward and inward supplies with lax liability and input tax credit in GSTR-3B. A regular tax payer has to file GSTR-1 and GSTR-3B on monthly basis and need to file GSTR-9 on annually basis. There are separate types of returns applicable to a composition dealer, non-resident taxpayer, ISD, Tax deductor or collector, a person granted Unique Identification Number.
Revision of Returns
In GST, there is no mechanism to revise the returns. If any errors or omission made then it can be rectified or adjusted in the next period return. However, no rectification is allowed after the 30th November following the financial year or filing of annual return, whichever is earlier.
Interest on Late GST Payment
An interest @ 18 percent is need to pay on the late payment of GST. The interest would be applicable for the no. of days for which tax payment was delayed.
Penalty for non-filing of GST Returns
If a taxpayer does not file GST returns within the due dates, then the taxpayer has to pay a late fee of Rs. 50/- i.e. Rs.25/- for CGST and Rs.25/- for SGST per day (up to a maximum of Rs. 10,000/- or less based on the turnover) from the due date to the date when the returns are actually filed and in case of nil GST returns, late fee of Rs. 20/- i.e. Rs.10/- for CGST and Rs 10/- for SGST per day (up to a maximum of Rs. 500/-) applicable.
TDS Returns
For advance collection of taxes and to bring the transaction on record government has bring the provision of TDS and TCS in the Income-tax Act in which tax has to be deducted or collected at the point of generation of income. Tax is deducted by the payer and deposit the same directly to the Government which got reflected in the 26AS of the receiver to get the tax credit.
The provisions of TDS apply to several payments like salary, rent, interest, commission, contractor payment, brokerage, professional fees, royalty, etc.
Due date to deposit TDS:
- Where the payment is made in the month of March then on or before 30th day of April.
- In any other case on or before 7th of the following month in which deduction is made.
Types of TDS return forms
TDS return need to be furnished on quarterly basis in following forms:-
- Form 24Q – Details of deduction of tax from salary.
- Form 26Q – Details of deduction of tax from other than salary.
Due date to file TDS return
| Quarter Ending | Due Date |
|---|---|
| 30th June | 31st July |
| 30th September | 31st October |
| 31st December | 31st January |
| 31st March | 31st May |
Consequences if payment of TDS is not made
A deductor have to face the following consequences if the deductor fails to deduct or after deducting fails to deposit TDS:
Disallowance of expenditure: If TDS not deducted or after deduction, not paid to the government, then expenditure will not be allowed as deduction under income tax in case of payment to non-resident but in case of resident, 30% of the expenditure will be disallowed under income tax and in subsequent years, TDS deducted and deposited then the disallowed expenses will be allowed in the subsequent years.
Levy of interest: Interest at rate of 1% p.m. for delay in deduction or 1.5% p.m. for delay in deposit of TDS.
Levy of Penalty: Penalty can be levied by Assessing Officer however; the total amount of penalty shall not exceed the amount of TDS in arrears.
Prosecution: If a person fails to pay TDS, then he shall be punishable with rigorous imprisonment for a minimum 3 months which may extend to seven years and with fine.
Payroll Processing
Payroll Processing in India is a technical process which constitutes financial elements like gross salary, allowances, deduction, net salary, bonuses, daily wages, leave, and many more elements which are part of each employee’s journey with any company. Employees are the most important asset of an organization that’s why companies invest lots of time and energy in in recruiting, training and setting up of an employee friendly culture and pay salaries according to their qualification, experiences and knowledge so that company can retain the good employees for the mutual growth. In order to keep employees happy and satisfied, companies setup system for payroll processing so that employees get paid on time and without any errors in that way payroll processing plays a very important role for companies.
Process
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1
Defining salary structures.
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2
Gathering employee data, components, deductions and allowances.
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3
Setting up the policies for taxes and other deductions.
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4
Calculating the total salary as per the company HR policies.
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5
Disbursement of salary
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6
Deposit of Statutory dues like PF, ESI and TDS
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7
Filing of Statutory Returns
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8
Providing Salary slips and other reports to employees
ROC Annual Filings
Every company has to file AOC-4 and MGT-7/7A annually within 30 days and 60 days of AGM respectively.
Form AOC-4
Every company has to file its financial statements by e-Form AOC4 within the 30 days from the date of AGM. If company needs to revise the financial statement or Board’s report then revised documents shall be filed by revised e-Form AOC-4.
One Person Company shall file its financial statements along with all the necessary documents, within one hundred eighty days from the closure of the financial year.
Documents to be attached
- Financial statements duly authenticated as per section 134 (including Board’s report, auditors’ report and other documents).
- Directors’ report as per sub-section (3) of section 134.
Form MGT-7/MGT-7A
Every company shall prepare an annual return in the form MGT-7/7A containing the particulars as they stood on the close of the financial year regarding:
- its registered office and principal business activities along with details of its holding, subsidiary and associate companies;
- its shareholding pattern;
- its indebtedness;
- changes in members and debenture-holders since the close of the previous financial year
- changes in promoters, directors, key managerial personnel since the close of the previous financial year;
- Details of members meetings, Board and its various committees meetings along with attendance details;
- remuneration of directors and KMP during the year;
- details of penalty or punishment levied on the company, its directors or officers and details of compounding of offences if any;
- matters relating to certification as may be prescribed;
- and such other matters as required in the form.
Documents to be attached
- List of shareholders, debenture holders
Filing fees for AOC-4 and MGT-7/7A
| Nominal Share Capital | Fee applicable |
|---|---|
| Less than 1,00,000 | Rupees 200 per document |
| 1,00,000 to 4,99,999 | Rupees 300 per document |
| 5,00,000 to 24,99,999 | Rupees 400 per document |
| 25,00,000 to 99,99,999 | Rupees 500 per document |
| 1,00,00,000 or more | Rupees 600 per document |
Additional fees for delay in filing form AOC-4 and MGT-7/7A
A penalty of Rs.100 per day is applicable with no maximum limit if the above forms is not filed within the due date.
ROC Annual Filings for LLP
Every LLP shall file annual returns with MCA. Following are the forms which are applicable on every LLP to be filed on annually basis:
| Form 8- Statement of Account & Solvency | Within 30 days from the end of six months of the FY- to which it related i.e. 30th October |
| Form 11- Annual Return | Within 60 days of close of the financial year- to which it relates to i.e. 30th May |
Form-8
Form 8 is Statement of Account & Solvency. In Form 8, the LLP must provide details of financial transactions undertaken during the financial year and position at the end of financial year. In addition to the financial position, the LLP must also declare:
- Declare that the turnover is above Rs 40 lakhs or below Rs. 40 lakhs.
- Declare that the LLP has already filed all the forms for creation of charges or modification or satisfaction.
- Declare that the partners have taken responsibility to maintain adequate accounting records.
Form-11
In Annual return or Form 11, details of all the Designated partners like changes in the management of LLP during the year. It is mandatorily for every LLP to file Annual returns and financial statements with the ROC even if they are no transactions.
Filing fees for Form 8 and 11
There are normal government fees of Rs 50-200 on the basis of contribution of the LLP and additional fees of Rs 100 per day applicable with no maximum limit.
