Is it necessary to take Voucher Printout?

All posts by Jasleen Kaur MLGA

Is it necessary to take Voucher Printout?

Isn’t Vendor’s bill sufficient?

 

A big

Cartoon No Symbol Isolated Cheerful ...

As how can you know while checking it by yourself and Auditing  –

 

The concerned party has claimed ITC or not ? or if it all goes in expenses.

If claimed, hasn’t taken ITC C or S in I or…ITC I in C or S ?

If TDS has been deducted or not ?

Which section’s TDS has been deducted or wrongly deducted 2% TDS rather than 10% TDS or vice-versa ?

0.1% has been deducted or not ?

If you have printout it’s easy to check,understand and approve the Audit.

 

For more such information listen the video below by – Mr. Sangeet Kumar Gupta, F.C.A and Co-founder of Finsys .

Integrated Association of Micro, Small & Medium Enterprises of India

E-circular dated 26-Jan-2025

Integrated Association of Micro, Small & Medium Enterprises of India

www.iamsmeofindia.com

E-mail: info@iamsmeofindia.com, +91-9711123111 (Executive Secretary)

 

 

Rajive Chawla

 

Chairman, IamSMEofIndia

 

 

 

 

 

 

 

 

 

Sangeet Kr Gupta

 

Hon. Consultant,

IamSMEofIndia

Dear Members,

Happy Republic Day 2025

Today, India, that is Bharat, is celebrating its 76th Republic Day.

On January 26, 1950, the Constitution of India was adopted,

and our country became a Republic.

Let us come together to celebrate the spirit of unity, liberty, and democracy that makes India truly incredible.

 

Let’s remember the sacrifices of our freedom fighters and work together for a prosperous India.

Let us also remember our Statutory Last Dates

4 days left

To give some Statutory annual payments

&

To Give contribution for the welfare of Workers in our teams

 

So, this is Labour Welfare Fund, Haryana

( Similar to Professional Tax, in some states, in some manner)

Last “Extended” Date for Annual payment and Annual Return

For Jan to December, 2024   : 31st Jan 2025

 

 

 

( As relevant to our members )

Note : Refer Detailed notifications and FAQ for Details. This Circular is for “ease of Understanding” and encouraging our members to clear the issues… where possible. For fine print you can contact your friendly Auditors and Tax Consultants.

 

This is the Collection part….. fine

You have to pay this… ok

But , do you know,

You can help your workers with a lot of benefits

How many of you have actually helped your staff and workers get this benefit ?

Try this now….. Some user-friendly messages from the Labour Dept..

Please forward the same to your HR Dept

 

 

And give them a target to help arrange these benefits to your workers.

 

 

 

 

 

 

In case of the unfortunate event…. above benefits are also available for the dependents

Contact details

 

 

https://www.facebook.com/labourdepartmentharyana

 

 

 

Phone helpline

For LWF benefits

 

 

 

 

 

https://www.youtube.com/watch?v=NuHVEARp3O8

 

For queries, suggestions and feedback , you can e-mail us 

Sangeet Kumar Gupta, FCA, DISA, ACMA, PGDMM, B.Com(Hons), Honorary Consultant, Integrated Association of Micro Small and Medium Enterprises of India, 93126-08426, Camp Off : TB-06, 3rd Floor, Crown Plaza, Sector-15A, Faridabad, Haryana 121007   skgupta[at]finsys.in. I am SME of India Office … Plot No.135, Sector 59, Industrial Estate Phase-II, Ballabhgarh, Faridabad- 121004, Haryana

Subscription to our newsletters/ e-circulars

Please send your details, and request e-mail to info@iamsmeofindia.com  / skgupta[at]finsys.in

 

for Discontinuation of this E-mail

To discontinue receipt of e-mails from the author, please reply mentioning “Discontinue” in the Subject.

 

Notes & disclaimer

The contents of this circular are for Private circulation & intended for the addressee/s only. We do not warrant that this email is free of mistakes, errors or any other defect. Care has been taken to provide authentic information, but it is advisable to confirm/verify with qualified legal practitioners, professionals before implementing any suggestions. The views expressed are not necessarily those of the Association. We encourage readers, our Members to write to us their opinions, suggestions, ideas, comments, thoughts and bring to our knowledge mistakes, omissions etc. which we’d be pleased to correct/implement.

For personalised suggestions, and solutions, contact our I am SME of India Team and Consultants

Excellent Web Based ERP Software Facilities from Finsys ERP Team

 

 

Finsys Accounting BPO Services … servicing Clients in Tamil Nadu, Gujarat, Rajasthan, UP, Haryana, Maharashtra, Uttarakhand, and of course Delhi NCR

 

 

Finsys ERP Software expands its services at Egypt, UAE, Saudi Arabia, Nigeria, Angola, Congo, Mauritius

 

Join India’s Largest MSME Network
Save Lakhs of Rs in Subsidies,

Network with Business Owners, Buy & Grow Collectively.

 

To Join us,

 click https://iamsmeofindia.com/members/

 

https://www.iamsmeofindia.com/

 

 

 

As we wrap up this edition of the Special Republic Day 2025 E-Circular

Once again….we wish…May the ideals of our Republic inspire us to be better citizens and contribute to the growth and harmony of India.

Let’s take pride in our glorious past and commit ourselves to an even brighter future for our nation. Jai Hind.

Beneficial Ownership Information Report (BOIR)

How to File a Beneficial Ownership Information Report (BOIR) for Your Business ? ( from India )

Yes, if you have a Subsidiary in US, or a Joint Venture, remember to file this.

Yes, You have to file, even if you have any Shares in USA, and you are holding on behalf of somebody else… So, Just like Indian Government MCA wants you to file the BEN-1 and BEN-2… the US Government has also learned this from our Indian Transparency systems. Just like we have KYC, Know your Customer norms in India, Now US has also started the BOIR form on similar level in USA, for anybody who has shares in a US Company.

Compiled for CA Students in India : Deepanshu Gupta, CA Final, 2nd  year, at MLG Associates, Faridabad,

Supported by Jasleen Kaur

 

Who are required to file BOIR form?

 

Not all companies are required to report BOI to Financial Crimes Enforcement Network (FinCEN) under the Reporting Rule. Companies are required to report only if they meet the Reporting Rule’s definition of a “reporting company”.

 

Which entity is a Reporting Entity ?

 

A “Reporting Company” for BOIR (Beneficial Ownership Information Reporting) refers to any legal entity that is required to file information about its beneficial owners with the Financial Crimes Enforcement Network (FinCEN), typically including corporations, limited liability companies (LLCs), limited partnerships (LPs), and other entities formed by filing documents with a Secretary of State’s office in the United States.

 

Key points about reporting companies for BOIR

 

 

Who defines reporting companies ?

 FinCEN determines which entities are considered as “reporting companies” under the Corporate Transparency Act.

What information is reported in BOIR ?

This includes details about the company’s beneficial owners, such as their full names, dates of birth, addresses, and identifying document numbers.

When to file BOIR ?

Companies created or registered on or after January 1, 2024, must file their initial BOIR within 30 days of formation, while companies formed before that date have a deadline to file by January 1, 2025.

 

EXEMPTIONS

 

 

The Reporting Rule specifies twenty-three (23) specific types of entities which are exempt to file BOIR form are as follows-

1.

Securities reporting issuer

2.

Governmental Authority

3.

Bank

4.

Credit union

5.

Depository institution holding companies

6.

money services business

7.

Broker or dealer in securities

8.

Securities exchange or clearing agency

9.

Other Exchange Act registered entity

10.

Investment company or investment adviser

11.

Venture capital fund adviser

12.

Insurance company

13.

State-licensed insurance producer

14.

Commodity Exchange Act registered entity

15.

Accounting firm

16.

Public utility

17.

Financial market utility

18.

Pooled investment vehicle

19.

Tax-exempt entity

20.

Entity assisting a Tax-exempt entity

21.

Large operating company

22.

Subsidiary of certain exempt entities

23.

Inactive entity

 

Now,

If your company is a reporting company, your next step is to identify its beneficial owners.

 

A beneficial owner is any individual who, directly or indirectly:

 

• Exercises substantial control over a reporting company;

OR

• Owns or controls at least 25 percent of the ownership interests of a reporting company.

 

Lets understand terms used above-

 

SUBSTANTIAL CONTROL

The Individual is a senior offiicer.

The Individual has the authority to appoint or remove majority of Directors of Reporting Company.

The Individual is a Important Decision Maker.

The Individual has any other form of Substantial control over Reporting Company.

 

OWNERSHIP INTEREST

Holds Equity, stock, voting right, profit interest, convertible instruments, options, or other mechanism used to establish ownership.

Any other instrument, contract or other mechanism used to establish ownership.

 

 

BOIR’S Deadline

 

 

The deadline for submitting a BOIR depends upon when the reporting company was created or registered to do business in the United States.Beneficial Ownership Information Reporting(BOIR) - TaxZerone BlogIf the reporting company identifies an inaccuracy in a BOIR that the reporting company filed, the reporting company must correct it no later than 30 days after the date the reporting company became aware of the inaccuracy or had reason to know of it.

What are the penalties for violating BOIR Requirements?

 

FinCEN imposes two types of penalties:

  • Civil penalties:  Businesses failing to file on time or providing incorrect information will be imposed a penalty of range up to $591 per day.
  • Criminal penalties:  Criminal penalties will be imposed for wilful failure or providing fraudulent information with the FinCEN. Criminal penalties for non-compliance may include fines up to $10,000 or imprisonment for up to two years.

sources :

US Govt Site : https://boiefiling.fincen.gov/fileboir

In the service of the Growing Indian Middle level MSME’s

The mini MNC’s from India….

Come’on world…. we are coming

contact the author at click here

Youtube – Check Points for Audit

Audit

 

 

What important points to be check while auditing ?

 

1.New Sales Order – https://mlgassociates.in/if-you-are-doing-your-sales-order-audit-correctly  (Click and Read)

2.New Customer – https://mlgassociates.in/new-customer-creation(Click and Read)

3.New HSN/SAC code and Recording Gate Outs – https://mlgassociates.in/new-hsc-sac-code-gate-out-record(Click and Read)

4.Good’s Reach Record –https://mlgassociates.in/youtube-audit-of-goods-in-transit(Click and Read)

5.Customer’s Payment Advice & E-way Bill Audit- https://mlgassociates.in/youtube-audit-of-customer-payment-advice-e-way-bills(Click and Read)

Now here we are adding some more small yet important new points in this.

 

Bill to Ship to Shipment

 

Generally manufacturing industries & B2B suppliers doesn’t face these kind of shipments but packaging industries sometimes gets bill to ship to shipment when they have to Bill to head office and ship to is made to different contractors.

What point to be checked while auditing ‘Bill to Ship to‘ Invoices ?

Place of Supply should be on Bill to basis not on ship to basis.

 

Signature on  the Invoice

 

 

Invoice either has to be digitally signed or physically signed by authorised signatory according to Rule 46.

Service Invoice

 

 

Any New Service invoice entered in this month or not ?

Proper SoP is followed or not ?

 

Inter-unit Head office expense

 

 

inter unit head office expense has been made or not. As most of the companies has multiple units now they should also have inter unit billing as its necessary.

 

On A/c Receipts

 

 

You should know payment made by customer is against which bill. So that you can knock off the bills easily and you and your customer’s books should also gets reconcile easily.

Sale of inputs cleared ‘as such’

If you have cleared your inputs as such means you procure and arrange any  material and then supply it to your vendor.

How you costs it ?

How you created its Ledger heads ?

Have you included it in your sale or purchase ?

What are your companies SoP for this ?

 

Sale of Old Machinery

If you sold any machine, car, truck, furniture or any other asset in this month ?

Invoice is made or not ? & GST had paid or not ?

Fixed Asset register has been updated or not ?

 

Scrap Sale

 

 

Proper invoice made for scrap sale ?
TCS has been deducted or not as applicable ?
If their is any low rate or 0 rate TCS certificate or any declarations according to 27C.
If TCS charged is correct or not ?

Other Sources of Income

 

 

Proper Accrual made?

Income from Job Work

Income from Services ?

Income from FDS ?

Income from Security Interest ?

Income Tax Refund ?-Payment made from government

 

Return from Customer

If return from customer is properly gets account for in your books or not ?

Again book the proper sale return.

Check what happens to customer return. Is it in inventory ?

Customer Debit note is received with material or not ?

Avoid double IRN.

Customer Reconciliation is also important once in 2 or 3 months of 80 % party.

 

 

 

For more information and clarity watch the video below by – Mr. Sangeet Kumar Gupta, F.C.A and Co-founder of Finsys .

 

Video Shot at Jaipur Marriot

 

MLG Associates

 

What are the good things you must see during audit of the Sales Side. Debtors, Prices, Sale order and so many things.. Practical Ideas.

 

 

Youtube – Audit of Customer Payment Advice & E- way Bills

Audit

 

 

In our Learning of making Sale Audit Better and Effective We learnt-

What important points to be check while auditing ? when you are –

1.Taking New Sales Order – https://mlgassociates.in/if-you-are-doing-your-sales-order-audit-correctly  (Click and Read)

2.Creating New Customer – https://mlgassociates.in/new-customer-creation(Click and Read)

3.Entering New HSN/SAC code and Recording Gate Outs – https://mlgassociates.in/new-hsc-sac-code-gate-out-record

4.Good’s Reach Record –https://mlgassociates.in/youtube-audit-of-goods-in-transit

Now here we are adding two new points in this.

 

Customer’s Payment Advice Audit

 

 

If you don’t take customer’s payment advices and booked it on FIFO basis then How payments get settle ? or How you know you get the right amount of payment or not ?

 

Solution

 

 

1.

Insist Payment Advice.

 

2.

Do test audit of Payment Advices.

 

3.

Try to take data from your customer in excel format so that you can upload it and save your time.

 

4.

If you have more than 10 pages transaction in one particular payment then try to do it in excel format only.

 

E-way Bill’s Audit

 

 

Check if all relevant E-way bills are made or not.

How to check it ?

 

1.

Check it Manually

 

 2.

If you have integrated system, E-way bill is linked to portal and it saves data properly then their is a possibility that you can take out data from system only.

 

3.

If your E-way bill is not made then their is risk of Truck impounding and penalties.

 

For more such points which are important for your internal audit will gonna be discussed soon, just stay tuned.

For more information and clarity watch the video below by – Mr. Sangeet Kumar Gupta, F.C.A and Co-founder of Finsys .

 

Video Shot at Jaipur Marriot

 

MLG Associates

 

What are the good things you must see during audit of the Sales Side. Debtors, Prices, Sale order and so many things.. Practical Ideas.

 

 

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