Advance Tax – First Instalment. ( Due date is 15th June 2024 )

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Advance Tax – First Instalment. ( Due date is 15th June 2024 )

Tax ALERT

 

This is normal yearly Quarterly SOP. Nothing new. But sending this reminder only for ready reference.

We all know that we must pay advance tax before the financial year ends in 4 instalments: 15th June, 15th September, 15th December and 15th March.

This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.

Points to remember
  1. Estimated ? Yes.  make your best estimate .
  2. How much ? This is 15% of the Annual Tax payable by 15th June for FY 23-24
  3. This is not applicable if your Tax due is nil, (example due to any loss)
  4. Similarly, if your Tax due is less than the TDS already deducted by your customers etc. then, again Advance tax is not required
  5. What will happen if you don’t pay in time ? Govt will charge a bit of interest… this is approx 1% p.a. ( for a block of 3 months, in 1 go )
  6. How to pay ? Online only
  7. Site name = either your Bank account will have a link, or
  8. Official sites are : https://incometaxindia.gov.in/ and
  9. https://incometaxindia.gov.in/Pages/tax-services/pay-tax-online.aspx

Benefits of Paying Advance Tax
1. Avoidance of interest and penalty charges
2. Better cash flow management
3. Avoidance of last-minute rush and stress
4. Avoidance of default notice by the tax department

SO
PLS AVOID LAST DATE. and pay in time, as per normal annual SOP.

Sale to Merchant Exporter Deemed Export, GST conditions

Conditions in GST for Export indirect …

Deemed Exports via Merchant Exporter…0.1% GST is not your “Right”, unless you do these duties.

Terms and conditions

(i) The registered supplier shall supply the goods to the registered recipient on a tax invoice;

(ii) The registered recipient shall export the said goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier;

(iii) The registered recipient shall indicate the Goods and Services Tax Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be;

(iv) The registered recipient shall be registered with an Export Promotion Council or a Commodity Board recognised by the Department of Commerce;

(v) The registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier;

(vi) The registered recipient shall move the said goods from place of registered supplier –
(a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or
(b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported;

(vii) If the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported;

(viii) In case of situation referred to in condition (vii), the registered recipient shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax officer of such supplier; and

(ix) When goods have been exported, the registered recipient shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the registered supplier along with proof of export general manifest or export report having been filed to the registered supplier as well as jurisdictional tax officer of such supplier

 


Rajesh Khandelwal, CA, CPA, DISA, LLB, MBA

Ideas Courtesy : Mr Rajesh Khandelwal, CA and learned speaker on GST matters , across India.

There are the MANDATORY  conditions in GST, for sale to merchant exporter.

If you can fulfil these, then good…. Instead of 18% normal GST rate you can charge only 0.1% GST on the sale in this situation

Points to remember

MANY PEOPLE MISS SOME OF THESE POINTS… AND RISK GOES BIG

 


 

Conditions in GST for Export indirect … via Merchant Exporter…0.1% GST is not yet right, unless you do these duties.

 

Recap on conditions….Conditions and GST precautions for Sale to Merchant Exporter for 0.1%

Terms and conditions

(i) The registered supplier shall supply the goods to the registered recipient on a tax invoice;

(ii) The registered recipient shall export the said goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier;

(iii) The registered recipient shall indicate the Goods and Services Tax Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be;

(iv) The registered recipient shall be registered with an Export Promotion Council or a Commodity Board recognised by the Department of Commerce;

(v) The registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier;

(vi) The registered recipient shall move the said goods from place of registered supplier –
(a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or
(b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported;

(vii) If the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported;

(viii) In case of situation referred to in condition (vii), the registered recipient shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax officer of such supplier; and

(ix) When goods have been exported, the registered recipient shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the registered supplier along with proof of export general manifest or export report having been filed to the registered supplier as well as jurisdictional tax officer of such supplier

 


What are the conditions in GST, for sale to merchant exporter. Instead of 18%GST you can charge only 0.1% points to remember


 

Conditions in GST for Export indirect … via Merchant Exporter…0.1% GST is not yet right, unless you do these duties.

Last date 15-5-2024 : MSME payments 43B(h) -Income Tax

Last Date was 15-5-2024 .. Hope you have already paid the MSME’s of last year fully.

Alert dated 14th May-2024 at — 9 pm

 

  1. Hope you have already paid  all MSME vendors bills of 29-2-2024, by 15th April 2024…..
  2. Hope your MSME vendors Bills upto 15th March 2024 are also paid between 20th and 30th April 2024.. 

  3. Hope your planning includes MSME vendors Bills upto 31st March 2024 are also paid between  30th April and 10th May 2024. (Just to be safe)……

  4. anyway tomorrow 15-5-2024 is the official final final final last date

  5. See this yourself.
  6. Also remember to clear all the MSME dues…
  7. Short cut :Vigilance point
  8. 5th March by 5th April ( start the process by 30th day.. so that you are safe bye 45th day )
    10th March by 10 April
    15th March by 15th April
    20th Mar. by 20th April
    25th Mar by 25th April
    31st March… by 30th April( I have kept a Buffer )
  9. If you are an MSME … you might have been benefited from this in the March payment wave
  10. So, similarly, the WAVE continues
  11. Nobody can save your company from accidental tax later .. 

  12. This is a benefit Govt is giving to MSME’s and if you are a MSME take this benefit from your customers….
  13. Almost 4 Crores MSME are already registered and are claiming this benefit… are you taking this Benefit ???
  14. Have you made your Financial Budget to pay all eligible MSME vendor’s : Arrange Funds as soon as possible. Keep Buffer for new creditors, new invoices of this period.
  15. Sent letters to all creditors ? Kept evidence ? Two rounds of emails is a must evidence.

  16. Do you have letters or MOU with each MSME vendor, … with overriding clause for 45 days, irrespective of the PO’s and Invoices. ( get the format in the Google drive link below )
  17. Reduce your advance tax ? Pay MSME in Advance. …. yes possible ( most likely.) But conditions apply. Risk involved. But likely due to a past Supreme Court Judgement
  18. Section 43B(h)  turnover sales
  19. Sales Idea.. if you have power to do more sales, and have sufficient funds : Deregister in MSMED Act…. give affidavit to your Potential Customers… “Get More Sales” and “Get more Margin”

  20. Non Registered MSME Vendors ….? The Udhyam Adhar is compulsory. No need to see the Balance Sheet, or take a CA Certificate. Not relevant and not required.
  21. Past or Future ? Future bills only ( old bills prior to 1-4-2023 are not in problem in this section.. they are problem in section 41 .. with bigger consequences …… Since they are like … why unpaid… why are you not paying… are they not a liability at all ?????

  22. Three year MSME category Rule notification dt 18-10-2022.. Change of category upwards… you can take the benefit of previous classification for three long years. Yes you can. ( see notification in the Google drive link below )

  1. Cheque Hand over   ( Cheque in Transit ?)……….? This idea can work only if you have 100% clear balance in your bank account… Else… It will not be acceptable. 

  2. Money is coming automatically to most MSME’s .. every day… Congratulations, if you are the beneficiary too.

  3. Hope the PSU’s also start paying in the same way. The PSU chief will be shocked with huge tax if he does not organise the payments to all the MSME vendors in time… this will create a new culture.

 

Ideas, Tips, things to take care of… MSME act related 43B(h) income tax topic . Good ideas you can work around with and make more money.

Google Drive link for the Powerpoint presentation , Copies of Letters, Emails, MOU.. as discussed in the Session by Mr Sangeet Kr Gupta. in the last Zoom seminar

MOU copy inside

 

43B(h) benefit ? 43B(h) action ? 43B(h) what to do ? 43B(h) safety ? 43B(h) annexure ? 43B(h) when to follow ? 43B(h)penalty? 43B(h)areyousafe?

How to do this in Finsys ? Very simple… Just ask the accounts to take out the Vendor Outstanding report.. in Future date… say 1st May 2024… and see what will come as overdue on that date… all those invoices are fit to start processing.. so that you are safe.. by 1st May and so on….

Team at your service.. Contact us page

Ideas MOU format letter format … uploaded on the google drive link above

Audit Checklist Purchase vouchers MLG Associates Audit Articles

Dear MLG Team members

and dear ICAI Students,

as per ICAI Guidelines, a Audit Programme is good to start with

now what things you must see

What are the things that you must see during voucher audit ?

Detailed vouchers Audit ?

What are the MLG standard Audit points ?

Focus : MSME Manufacturing Companies

Audit Checklist MSME Manufacturing Companies

made for MLG Associates Audit Articles

Purchase voucher Audit

Date : Maybe the voucher is pertaining to next year – or last year – talk to your Audit Supervisor
Amount
TDS is proper – Section ? Rate ? Account ?
ITC is proper ? IGST vs C/S
Place of supply – if wrong… highlight
ineligible ITC GST — seen ?
All vouchers are booked or not ( in the bundle )
fake voucher ? Risk mitigation
Entry on basis of only a photocopy bill / unsigned bill ( risk of double )
Second entry of same bill….. By small prefix change / suffix change
manipulation in voucher supportings
Totalling mistake done ( by mistake or by choice )
Ledger heading is ok – which type of purchase, should go into whch head
Duplicate copy for transporter is being used as the main copy… Risk of double entry
Unsigned bill from vendor side- Rule 46 non compliance
Wrong GST number of customer written by vendor
Wrong Name of customer written by vendor
Wrong address used… which is not In the GST portal
Debit Note made or not… when the customer has noted that on the bill
Wrong GST rate used
Vendor has put IGST instead of CGST or SGST.
Voucher print was stapled on the invoice or not ?
Gate Entry stamp is there or not ?  If missing.. Then how will GST input be valid
QC stamp — on invoice or on the MRR, …. In some larger companies like CHPL, MINV

Cash voucher audit

Date
Amount
TDS is proper?
ITC was there  then why cash voucher .. why not via purchase voucher series.. else how 3B will be ok ?
5Cash over Rs 10000 in a day
6ineligible ITC GST — seen ?
7All vouchers are booked or not ( in the bundle )
8fake voucher ? Risk mitigation
9manipulation in voucher supportings
10Totalling mistake done ( by mistake or by choice )
11double booking — once via vendor account, 2nd by imprest account
12Ledger heading is ok

other series like

57 seriessame as above
5A seriessame as abovespecial focus on TDS….
Special focus on why ?
since sometimes MRR will not be applicable
5B seriessame as 50 and 5A
Debit notes same as aboveplus logic , reasonableness, reason , writeup ?
Credit notes same as aboveplus logic , reasonableness, reason , writeup ?

51 series

same as aboveplus logic , reasonableness, reason , writeup ?
for job work
special focus on TDS….
Special focus on why ?
since sometimes MRR will not be applicable

Sale invoices

cuttings ?
unsigned ?
not signed by the Regd authorised signatory ?
proof of goods reaching the customer / in case of export … Customs dept ?

Export invoices

booked for wrong USD rate ( must use the customs export shipping bill copy rate )

Additional Director… Confirm in AGM or Can we do a EGM ? How to regularise ?

REGULARISATION OF “ADDITIONAL” DIRECTOR ?

Appointed a Family member as Additional Director during the year ?

Query in your mind ? How to make this “Regular Director” …. or Normal Full time Director  ?

So, You thought this automatic ? No, that is not so

And this gets done in the next AGM  ? Yes… But what if somebody forgot ???

Advantage and Disadvantage

Should you conduct an EGM…. Does that solve things ? Faster ? Smoother ? for a MSME unit ? Yes, it works fine.

Q-  Additional Director is usually regularised in the next AGM ,but if the AGM is long time away then EGM a solution ?

Ans- Yes, an Extraordinary General Meeting (EGM) can be a solution for regularizing an Additional Director if the Annual General Meeting (AGM) is a long time away.

The Companies Act allows the board to appoint an additional director subject to shareholder ratification at a general meeting (https://taxguru.in/corporate-law/appointment-additional-director-prerequisites-procedure.html). This ratification typically happens at the AGM, but there is no prohibition on holding it at an EGM. In fact, holding an EGM specifically for this purpose can be a more efficient way to formalize the appointment if the AGM is far off.

Here are some additional points to consider:

  • Notice requirements: As with any EGM, proper notice must be given to all shareholders in accordance with the company’s Articles of Association (AoA) and the Companies Act. The notice should include details about the EGM, including the purpose of the meeting, which is to regularize the appointment of the additional director.
  • Proxy voting: Shareholders can appoint proxies to vote on their behalf at the EGM.
  • Voting requirement: The resolution to regularize the appointment of the additional director typically requires a simple majority vote of the shareholders present and voting at the EGM.
  • Faster process: You don’t have to wait for the AGM, which can be several months away.
  • Flexibility: An EGM can be convened at any time to address urgent matters like director appointment.

However, there are also some things to keep in mind:

  • Cost: Convening an EGM involves additional costs compared to piggybacking on the AGM.
  • Notice period: There are specific notice requirements for EGMs that need to be followed.

Overall, holding an EGM is a viable option if you need to regularize the appointment of an additional director before the next AGM. Weigh the cost and inconvenience of the EGM against the urgency of regularizing the appointment.

Question:- Additional Director is usually regularised in the next AGM

but, if the AGM is long time away

is EGM a solution ?

Source:-CA final module of The Institute of Chartered Accountant of India

  1. What is Additional director as per Companies Act,2013 ?

 Ans:-Though appointed on a temporary basis, an additional director is vested with the same powers of a director. Moreover, they are subject to all obligations and limitations of a director. They are also entitled to seek appointment as a permanent director at the Annual General Meeting. The additional director must utilize his/her powers in the best interest of the company and the shareholders.

2 .Term for Additional Director?

A person appointed as an additional director can occupy their post until the date of the next Annual General Meeting. In the absence of an Annual General Meeting, their term of appointment will conclude on the date on which the annual general meeting should have been held.

3.Additional director is usually regularized in the next AGM?

But ,if AGM is long time away ,is EGM a solution?

Yes, this is a Good Solution

What to do, if you have a Additional Director and the AGM is long Time away ? If you are a MSME unit. and closely held.

Try the EGM Route.

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