5 Vital Duties Every CA in Kolkata Can Offer To Your Business

A Chartered Accountant is not just a strategic financial advisor you need for your business. In today’s rapidly changing world, taking the aid of a CA is a must if you want your business to navigate those uncertainties safely. These professionals have high ethical standards and undergo professional development at frequent intervals to keep themselves updated with the latest issues in the field of accountancy. Recently, there has been an increase in the demand for these professionals. The various roles played by them are regarded to be the main reason behind it.

CA in Kolkata

Few Roles A CA In Kolkata Can Play

Tax Accountant
An issue that arises in various aspects while running a business is tax matters. Whether it is the share scheme or day-to-day VAT, tax related issues are quite common. A CA when working as a Tax Accountant will not only prepare personal or corporate income tax statements but also formulate various functional tax strategies. These issues generally involve financial choices, the ideal time to expense items, deferral of taxes, and how to treat an acquisition or merger, among others.

Management Accountant
Gone are the days when CAs working as management accountants was known as ‘bean counters’. These days the job profile of management accountants has changed drastically. They collaborate with finance and marketing personnel with the aim of developing new business. They have started working in various companies and take an active part in decision making regarding the line of business analysis and capital budgeting.

Auditor
Every CA working as an auditor shoulders the responsibility of checking financial statements and accounting ledgers for your corporation. The job done by an auditor is supposed to be the base of numerous accounting practices. Since auditing work is nowadays becoming computerised, companies have to depend on complicated sampling methods. When a Chartered Accountant is working as an auditor, they have to work for different sectors and might even have to undertake numerous travels.

Financial Accountant
An experienced CA in Kolkata can also work as a Financial Accountant for your business. Their job profile varies drastically and is dependent on the type of business you are dealing with. They have the skills and experience to participate in vital financial decisions regarding acquisitions and mergers. If required, they also visit suppliers or clients to discuss business or set up a new account. Since a CA have adequate knowledge about both finance and accounting, working as a financial accountant isn’t a daunting task for them.

Budget Analyst
Since it is the responsibility of budget analysts to develop and manage the financial plans of an organisation, a CA can undertake the tasks of a Budget Analyst with ease. The demand for these professionals is quite noteworthy in various government and private industries. Just make sure that the Chartered Accountant you are hiring has superior public relation skills as negotiations are a vital part of their job.

Since the qualifications and skills of a CA make them suitable for all the roles stated above. It’s time you hire a professional and let them excel in those areas.

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

       CUSTOMS  DUTY

Heading

Existing

Proposed

Project Imports for cold storage, cold room (including for farm level pre-cooling) being extended for ‘cold chain including pre-cooling unit, pack houses, sorting and grading lines and ripening chamber’s also.

10%

5%

Refrigerated containers

10%

5%

Imitation Jewellery

10%

15%

Solar Lamp

12.5%

NIL

The duty free import allowance for bona fide gifts imported by post or air by courier service.

Rs. 100000

Rs.20000

Coal; briquettes, ovoid and similar solid fuels manufactured from coal

2.5% / 10%

2.5%

Coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons

10%

5%

CVD exemption on specified machinery required for construction of roads being withdrawn.

NIL

12.5%

Disposable sterilized dialyzer and micro barrier of artificial kidney being exempted from BCD, Excise duty / CVD and SAD

Applicable BCD, excise/CVD,SAD

Nil BCD NIL excise/ CVD nil SAD

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

EXCISE DUTY

Heading

Existing

Proposed

Excise duty on refrigerated containers being reduced

12.5%

6%

Excise duty on parts of railway or tramway locomotives or rolling stock and railway or tramway track fixtures and fittings, railway safety or traffic control equipment, etc. being reduced.

12.5%

6%

Excise duty on branded readymade garments and made up articles of textiles of retail sale price of Rs. 1000 or more being changed.

Nil (Without ITC) or 6% 12.5% (with ITC )

2% (without ITC) or 12.5% (with ITC)

The Tariff value for excise / CVD purposes on readymade garments and made up articles of textiles being changed.

30% of retail sale price

60% of retail sale price

The Tariff value for excise / CVD purpose on readymade garments and made up articles of textiles being changed.

NIL

1% (without ITC ) or 12.5% (ITC)

Excise duty on waters including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured being increased

18%

21%

Excise duty on Gutkha, chewing tobacco (including filter Khaini) and jarda scented tobacco being increased

70%

81%

Excise duty on Unmanufactured tobacco being increased

55%

64%

 

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

  • Abatement rate in respect of construction of residential complex, building is rationalized at 70% w.e.f 01.04.2016.
  • Clean Energy Cess on coal increased from Rs. 200 per tonne to Rs. 400 per tonne
  • Cess on crude reduced from 4500/MT to 20% ad valorem. Positive for companies like ONGC.
  • Proposed to exempt parts of dialysis equipment from basic customs duty.
  • Basic custom & excise duty on refrigerated containers reduced to 5%.
  • Higher excise duty on readymade garments priced at Rs. 1,000 or more.
  • Proposed to raise duty on most tobacco product by 10-15%.
  • Infrastructure cess levied on motor vehicles ranging from 1% to 4%
  • Number of returns for central excise assassee, above a certain threshold, is being reduced, from 27 to 13, one annual and 12 monthly returns. The annual return will also have to be filed by service tax assesses, above a certain threshold, taking total number of returns to three in a year for them. This will come into effect from 01.04.2016. The facility for revision of return, hitherto available to a services tax assessee only, being extended to manufacturers also.

CHANGES IN TAX TARES IN MAJOR CASES

SERVICE TAX

Heading

Existing

Proposed

Services provided by National Centre for Cold Chain Development of Agriculture, Cooperation and Farmer’s welfare, Government of India, by way of knowledge dissemination with effect from 01.04.2016

14%

NIL

Exemption on services provided by, -( i ) a senior advocate to an advocate or partnership firm of advocates providing legal Service; and (ii) a person represented on an arbitral tribunal to an arbitral tribunal, being withdrawn and service tax being levied under forward charge, with effect from 01.04.2016

NIL

14%

Services of transport of passengers, by ropeway, cable car or aerial tramway being withdrawn, with effect from 01.04.2016 NIL 14%
Negative List entry that covers ‘service of transportation of passengers, with or without accompanied belongings, by a stage carriage’ being omitted and tax proposed to be levied on service of transportation of passengers by air conditioned stage carriage, at the abatement of 60% without input tax credit, with effect from 01.04.2016 NIL 5.6%
Abatement on shifting of used household goods by a Goods Transport Agency is being rationalized at the rate of 60% without input tax credit, with effect from 01.04.2016 4.2% 5.6%
Service Tax on service of life insurance business provided by way of annuity under National Pension System regulated by Pension Fund Regulatory and Development Authority (PFEDA) w.e.f 01.04.16 3.5% NIL
Service tax provided by Employee’ Provident Fund Organization (EPFO) to employees, with effect from 01.04.2016 14% NIL
Composition rate of service tax on single premium annuity (Insurance) policies with effect from 01.04.2016 3.5%
Service tax on services provided by insurance Regulatory and Development Authority of India (IRDA) w.e.f 01.04.2016 14% NIL
Service tax on the services provided by way of skill / vocational training by training partners under Deen Dayal Upadhyay Grameen Kaushalya Yojana w.e.f 01.04.2016. 14% NIL
Service tax of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development & Entrepreneurship w.e.f 01.04.2016. 14% NIL
Interest rates on delayed payment of duty/tax across all indirect taxes being rationalized at 15%, except in case of service tax collected but not deposited to the exchequer, in which case the rate of interest will be 24% from the date on which the service tax payment became due.
For assesses with taxable value during preceding year / years covered by the notice is less than Rs. 60 Lakh, the rate of interest on delayed payment of service tax will be 12%. This will come into effect from date of enforcement of Finance Bill, 2016.
Custom 18% Excise 18% Service tax 18% 24 % 30% Customs Excise Service tax 15%. 24% in case of tax collected but not deposited
Exemption from service tax being extended to services provided by way of construction, maintenance etc. of canal, dam or other irrigation works provided to bodies set up by Government, during the period from the 1st July, 2012 to 29 th January, 2014 5.6% of total amount NIL

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

        Tax rate for Domestic Companies:

  • Where its total turnover or the gross receipt in the previous year 2014-15 does not exceed Rs. 5 crores – 29% of the total income shall be taxable.
  • And in all other cases, it will be 30% of the total income.

    Surcharge on domestic companies:

  • 7% whose taxable income exceeds Rs. 1 crore, but exceeds Rs. 10 crores p.a
  • 12% whose taxable income exceeds Rs. 10 crores p.a

    Surcharge on other than domestic companies:

  • 2% whose taxable income exceeds Rs.1 crore, but does not exceeds Rs. 10 crores p.a
  • 5% whose taxable income exceeds Rs.10 crores p.a

    Dividend Distribution Tax Increased:

    Additional tax at the rate of 15 per cent on dividends paid to its shareholders by the domestic company. [Section 115 – O]

Key Indirect Tax Proposals 

Krishi Kalyan Cess @ 0.5% on the value of taxable services proposed to be introduced w.e.f 1st day of June, 2016 to improve agriculture & other purpose relating to it.

Equalisation levy proposed to be charged @6% of the amount of consideration for any specified serviced received or receivable exceeding Rs. 1 lacs in the financial year by a non resident person not having permanent establishment in India from:

  1. A resident person carrying on business or profession; or
  2. A non- resident having a permanent establishment in India.
  • The Indirect Tax Dispute Resolution Scheme, 2016 proposed to come into force on 1st June, 2016 applicable to the declaration made up to 31st December, 2016:

A person may make a declaration to the designated authority on or before 31st Dec, 2016.

The designated authority shall acknowledge the same in such form as maybe prescribed.

The declaring shall pay tax due along with the interest & penalty equivalent to 25% of the penalty imposed in the impugned order within 15 days of the receipt of acknowledgement & intimate the designated authority within 7 days of making such payment giving details of payment made along with the proof. Within 15 days of the receipt of such proofs, the designated authority shall pass an order of discharge of dues.

  • No Service tax for houses built under 60 square meters.
  • Notification No. 14/2012 – ST, was amended by notification No. 1/2016 – ST so as to, inter alia, allow refund of service tax on services used beyond the factory etc. for the export. This amendment is being made effective from, 1st July 2012. This will come into effect from the date of enforcement of Finance Bill 2016.
  • Quarterly payment of services tax being extended to ‘one Person Company’ (OPC) and HUF also, with effect from 01.04.2016
  • Facility of payment of service tax being extended on receipt basis to ‘One Person Company’ (OPC) also, with effect from 01.04.2016
  • 13 cesses levied by other Ministries/Departments and administered by the Department of Revenue, where the revenue collection from each of them is less than Rs. 50 crore in a year being abolished.
  • CENVAT Credit Rules, 2004 being amended, to improve credit flow, reduce the compliance cost and litigation, particularly those relating to apportionment of credit between exempted and non-exempted final products/ services. Changes are also being made in the provisions relating to input services credit to outsourced manufacturers, under certain circumstances. Amendments will also enable manufactures with multiple manufacturing units to maintain a commom warehouse for inputs and distribute inputs with credits to the individual manufacturing units. This will come into effect from 01.04.2016
  • The monetary limit for launching prosecution being increased to Rs. 2 crore of services tax evasion and the power to arrest being restricted only to situations where the tax payer has collected the tax but no deposited in to the exchequer above a certain threshold of Rs. 2 crore. This will come into effect from date of enforcement of Finance Bill 2016.
  • Notification No. 27/2012 – C.E. (N.T.) being amended so as to provided that time limit for filling application for refund of Cenvat Credit, in case of export of services, is 1 year from the spevified date, with effect from 01.03.2016.
  • Period of limitation in respect of levy/payment/refund of service tax due to some error, is increased to 30 months from 18 months.

Fuel cost to be included for availing abatement on services by renting of motor cab from 01.04.2016.

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

Penalty rates to be 50% of tax case of underreporting of income and 200% of tax where there is misreporting of facts.

Time Limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.

Mandatory for the assessing officer to grant stay of demand once the assesse pays 15% of the disputed demand, while the appeal is pending before Commissioner of income-tax (Appeals).

Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above 1crore.

New manufacturing companies (set up after 1, 2016 ) to be taxed at 25% plus surcharge and cess.

From FY 17, small companies with exceeding Rs. 5 crore to be taxed at 29% plus surcharge and cess.

Major Amendments in Income Tax

Section Particulars Existing / Changes Effective Date
Sec 2 Amendment of section 2. (23c) “hearing includes communication of data documents through electronic mode. 1st June, 2016
Sec 6 Clause (3) Insertion of new Explanation

Substitution of Clause three – More clarity on place of effective management

A company is said to be resident in India in any previous year, if –
(i)It is an Indian company; or
(ii)Its place of effective management, in that year, is in India.Explanation. – For the purpose of this clause “place of effective management” means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole, are in substance made.
1st April, 2017

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

  • Persumptive Taxation with profit presumption @50% introduced for professionals with receipts up to Rs. 50 Lacs p.a.
  • Limited period compliance window for undisclosed income from 1st June, 2016 to 30th Sept, 2016. Tax payable is 30% + 7.5% Surcharge + 7.5% Penalty. Total tax computed at 45%. Immunity assured from scrutiny and prosecution.
  • E-assessment of scrutiny cases, making life easier for the tax payer.
  • The Government re-affirmed its plans to implement General Anti Avoidance Rule (GAAR) from April 1, 2017, a major negative for Flls & the stock market. Further POEM (place of effective management ) is deferred by 1 year.
  • 1% Tax Collected at Source (TCS) on any in – cash purchase of goods (other than bullion and jewellery ) & services over Rs. 2 lacs.
  • 1% TCS on purchase of luxury car amounting to Rs 10 lac or more.
  • 6% withholding tax (equalization levy ) on B2B transactions by e-commerce companies to holding companies abroad.
  • Securities Transaction Tax (STT) in case of “Options” is proposed to be increased from .017% to .05%.
  • Phasing out deduvtion under Invome Tax:
  • Accelerated depreciation wherever provided in IT ACT will be limited to maximum 40% from 1.4.2017
  • Benefit of deductions for Research would be limited to 150% from 1.4.2017 and 100% from 1.4.2020
  • Benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020.
  • The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020
  • Non-banking financial companies shall be eligible for deduction to the extent of 5%of its income in respect of provision for bad and doubtful.
  • One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.