Setting Up A Business? Know Why You Need A CA

If you are one of those business owners who think that they don’t need a chartered accountant just because they are setting up a business, it’s high time you debunk the myth. Gone are the days when the only responsibility of an accountant was to set up business accounts and file tax returns. Nowadays, chartered accountants offer a wide variety of services which make business operations easier for you. Hire a CA from the very first day of the startup and setting up your business will become easier.

Responsibility Of A CA

Certified chartered accountants have the experience, expertise and training required to complete your tax work on time. Whether it is about registering of taxes or tax compliance, they know how to make the process hassle-free and easier for you to understand. Every CA in Kolkata values the reputation earned by them over the years. They try to maintain it by completing the job assigned to them on time. Some of them can even help the business owners in other fields, besides accounting

Hire The Right CA

With so many chartered accountants scattered all over Kolkata, choosing just one is indeed a daunting task. The best you can do is to look for one with years of industry presence and they can help you maximise your business finances. They should understand your business goals and provide proper accounting advice during every stage of your venture, starting from the set-up of your business to succession planning. You can even ask them some basic small-business accounting questions and check whether they can answer your queries confidently.

CA in Kolkata

2 Primary Reasons Why You Need A CA When Setting Up A Business

  • Craft A Suitable Business Plan

Since developing a suitable business plan which can fulfil your business goals is not as easy as you think, hire a CA and let them craft a cost-effective tax plan. You can use it as a platform on which your business can start. If you are selling some goods or services, the focus of the CA will be on promoting those. You can start trading with ease if all the business activities are performed carefully. They will also let you know whether there is some unexpected cost around the corner.

  • Get Financial Advice

Whether you are planning to start a business or expand it, money plays a very vital role. How you utilise your money will determine whether you will succeed or fail in the business. The best professional you can approach for effective business advice is a CA. They will do some calculations and share some ideas from where you can make money and boost your business. If they ever feel that you are going wrong in the business during the set-up phase, they will let you know so that you can act accordingly.

Know The Impact Of COVID-19 On Taxation In India

Though our government has extended the deadline for ITR (Income Tax Return) till 30th June, 2020, start looking for a professional offering tax services instead of waiting for the deadline. The impact of coronavirus on income tax deadlines and penalties for taxpayers has been quite drastic. Our government has offered numerous relaxations under the Income Tax Act. The objective was to help taxpayers and ease their financial burden during the coronavirus pandemic.

They now have more time to file income tax returns. During a recent press meet in New Delhi, our finance minister Nirmala Sitharaman has reduced penalties and delayed the due dates for numerous direct taxes. The novel coronavirus outbreak has not only been declared as a pandemic but has already infected thousands of Indians in the last few weeks. The lockdown imposed by our Government has shut down numerous businesses temporarily all over India.

chartered accountant Kolkata

Lower Interest Rates

Not only did our Finance Minister extend the last date to file income tax returns from March 31st to June 30th but even the interest rate you have to pay for delaying advanced taxes payment has been lowered. Other types of taxes where the interest rates have been lowered are tax collected at source, tax deducted at source and equalisation levy. Earlier, the interest rates were between 12 to 18 percent. It has now been reduced to 9 percent.

How Did The Extension Help?

The extension of the deadline and decrease in interest rates have become a blessing in disguise for thousands of taxpayers during the pandemic. Tax experts and professionals offering tax services in Kolkata feel that the reduction in interest will help taxpayers preserve their liquidity during the economic crisis. The last day for linking Aadhaar with PAN card was extended from March 31 to June 30th.

Changes In The ‘Vivaad Se Vishwas’ Scheme

Earlier, a taxpayer had to pay 10% interest if he made payment under the tax dispute resolution mechanism after 31st March. Since India is under complete lockdown till 30th April, our Finance Minister has declared that taxpayers don’t have to pay any additional interest if they made the payment till 30th June. The relaxation and extension of the ‘Vivaad Se Vishwas’ scheme with benefit businesses with past liabilities, especially those with high-interest liabilities.

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COVID-19 has disrupted almost every business operations with decrease in cash flows. If you are also one of those business owners who could not make the payment till March 31st, get in touch with an experienced professional offering tax services and he will let you know what you should do next to prevent fines.

Time Limit Extension Under Direct Tax Statuses

Few events for which the Indian Government has extended the due dates are intimation to the tax department, issue of notice, returns under various direct tax statutes and filing of appeals, among others. The time limit has been extended for other direct tax statues as well, get in touch with a tax expert to know more. The announcement made by our financial ministry will be implemented by making some necessary amendments and issuing circulars.

How to choose the best institute for pursing CA in Kolkata?

Chartered Accountants are professionals who are employed by organizations to audit and maintain the accounting systems. These professionals either work as employees inside a company or gives professional advice for a onetime fee. There are many professional coaching centers for chartered accountant where you can enroll and get tuition to clear this difficult exam.

There are some prerequisites you should keep in mind while selecting the institute of your choice. This article will navigate you through the criteria’s you should keep in mind while embarking on the endeavor to find the perfect professional help to clear the CA hurdles.

chartered accountant skills

Do Your Research

Searching online is considered the best bait these days as you will get a lot of institute names in your area. Also, these institutes will be ranked according to their performances and there will be reviews accompanying them. It will be healthy for you to assess and come with the best institute of your choice. It is always better not to leave your judgment on the internet alone as all institutes these days have marketing wings to promote themselves.

Corroborate Your Facts

Before making your selection, it’s always wise to call up the institute and clear your doubts. Seek out ex students from the institutes and learn from their engagements with the coaching center. Verify all the credentials, certificate and services offered by them before making your final choice.

Timely Course Completion

This is one of the most important criteria while choosing an institute. Coaching classes have a tendency to drag their classes well after the stipulated completion date. You should make sure that they complete all their courses and assignments at least two months before the exams. It will give you the much needed time to revise your papers.

Checkout the Faculty

Faculty of an institute should be your first criteria for choosing the institute of your choice. Checkout whether the faculty has the required years of experience for training students in CA.You should judge the quality of the teachers, the method of teaching and strategies employed by them while conducting classes.

CA in Kolkata

Compare the Fee Structure

Exercise your judgment before getting lured by the discounts offered by the institutes. Scrutinize the normal fees taken by the institute as you can’t discontinue midsession.

A good institute can make your career, while a bad one can ruin it. The best institutes will not only train you but will also make sure that you become a well groomed professional. So, it is imperative to make your choice and this article will definitely make your search much easier than ever.

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

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.

Highlights of Union Budget 2016-17

BUDGET SEMINAR ACAE jointly with DTPA –  MARCH 1, 2016

Key Direct Tax Proposals

  • People with income less than Rs. 5 lakh to get rebate of Rs 5,000, up from Rs 2,000 last year.
  • Deduction for those who pay rent and do not have a house of their own and also do not get HRA from employers up from Rs. 24,000 to Rs. 60,000 p.a.
  • Disallowance will be limited to 1% of the actual expenditure claimed under rule 8D of Section 14A of income tax Act.
  • Tax on retirees: At present, social security schemes run by retirement fund body EPFO are tax free EEE ( exempt – exempt – exempt) scheme. That means deposits, accrual of interest and withdrawals are tax free under the scheme in order to bring greater parity in tac treatment of different types of pension plans, it is proposed that the contributions made on or after April 1, 2016 by an employee participating in a recognized provident fund and superannuation on withdrawal shall be exempt from tax. It is proposed to provide that any payment in commutation of an annuity purchased out of contrinution made on or after April 1, 2016, which exceeds 40% of the annuity, Shall be chargeable to tax.
  • For first home buyers, additional exemption of interested on housing loan of Rs. 50,000. Qualifying Criteria is that the loan value should be max Rs. 35 Lakh on cost of house not exceeding Rs. 50 lakh.
  • Tax-free superannuation limit increased to Rs 1.5 lacs.
  • Dividend income of individuals and HUF exceeding Rs 10 lac p.a will now be taxable @10%
  • Tax holiday for eligible starts – ups set up after April 1, 2016 for three consecutive years out of the first five years of setting up the company.
  • Long Term Capital gain period for unlisted companied reduced from 3 to 2 years in respect of sale of shares.
  • Presumptive Taxation limit enhanced to Rs. 2 crores. Thus small & medium business can opt for 8% presumed income & will not have to maintain accounts or get them audited up to turnover of Rs. 2 Cr.