Format of Letter to Customer for TDS TCS Changes wef 1-7-2021

Monthly Archives: June 2021

Format of Letter to Customer for TDS TCS Changes wef 1-7-2021

Format of Letter to Customer for TDS TCS Changes wef 1-7-2021

Date : _____

To

Customers Name =

Kind Attn : Mr / Ms _____

Mail to Customers for TDS/TCS Changes

Dear Sir,

We value our business relationship with you.

This letter is regarding the action required as per change in TDS and TCS laws from 1-7-2021

Action on TDS u/s. 194Q

Since your Turnover must be over Rs 10 crores p.a. and since our sale to us is expected to be over Rs 50 lakhs p.a., we request you to deducting a TDS u/s 194Q at 0.1% only.

We are not a specified person u/s 206AB. And have filed our returns as per Law.

We understand that our future payments will be after this TDS

And we will get credit of this TDS in your Form 26AS in due course

Action on TCS u/s. 206(1H)

As per 206(1H), if TDS is done by the customer then TCS is not required

Hence in our case, as per expert guidance, we have told our despatch department, that no TCS shall be charged on bills from us to you, from 1-7-2021.

For XXXXX Pvt Ltd

Authorised Signatory


p.s.

For Any Queries, you may refer to FAQ on TDS 194Q on https://youtu.be/2rXjCFVJVfo

And https://finsys.co.in/today-3-30pm-seminar-on-tds-on-goods-iamsmeofindia/

Last date of IE Code annual confirmation / updation is 30-6-2021

Import Export Code Number (IECode)

Last date of IE Code annual confirmation / amendment / updation is 30-6-2021…. hope you have done the same, if not, pls do


DGFT had issued a notification for applying, updating IEC (Now e-IEC). It is mandatory Every year from April to June even if, all details of IEC remain same all existing holders have to confirmed compulsory. Otherwise, IEC may be de-activated if not upgraded. In this article, we will discuss IEC Code Requires Renewal Every Year, else De-activated.

DGFT Notification on IEC Code Requires Renewal Every Year

In exercise of powers discussed by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as revised from time to time, the Central Government has amends the IEC related provisions under Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020.


Further, DGFT applying a new amendment for updating IEC (Now considered e-IEC). Now, every year from April to June even if all details of IEC remain same all existing holders have to confirmed compulsory. IEC may be de-activated if not confirmed.


New Amendments for Import Export Code

  • Importer Exporter Code (IEC) is obligatory for export/ import from/to India as specified in the Policy.
  • DGFT issues Importer Exporter Code in electronic form (e-IEC) where Application for issuance of e-IEC can be made instantly on the DGFT official Notification.
  • Amendment in the name of Importer-Exporter Code (IEC) as now it is Importer-Exporter Code (IEC)/(e-IEC)
  • Also, the application process for IEC and up-gradation in IEC is entirely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure.

Further Significant Amendments by DGFT

The following sub-paragraphs are entered under para 2.05 of Chapter-2 of Foreign Trade Policy, 2015-2020 as under:

1 IEC shall be updated electronically every year

An IEC holder has to assure that specifications in its IEC are updated electronically every year, during the April-June period. In cases where there are no changes in IEC details same also requires to be confirmed online.

2 IEC shall be de-activated, if it is not updated

An IEC shall be de-activated, if it is not updated within the specific time. An IEC therefore de-activated may be initiated, on its successful up-gradation. This would be without detriment to any other action carried for violation of any other provisions of the FTP.

3 IEC may be Flagged under Scrutiny

An IEC may be also be flagged for scrutiny. IEC holders are obligated to assure that any risks flagged by the system are timely declaimed, otherwise the IEC shall be deactivated. 


If you need any other guidance concerning the IEC Code, please feel free to contact our business advisors

New definition of (SMCs) Small and Medium companies in Accounting Standards

Good News

New definition of (SMCs) Small and Medium companies in Accounting Standard

New Limit of Turnover : Rs 250 Crores

New Limit of Borrowings : Rs 50 Crores

 


Ministry has issued, The Companies (Accounting Standards) Amendment, Rules 2021 passed on 23rd June 2021. These Rules came into effect on 23rd June 2021.

Short Summary:

The ministry of corporate affairs (MCA) has raised the threshold turnover and borrowing limits in its definition of small and medium companies (SMCs) to align the applicable accounting standards rules with the latest definition as per the ministry of micro, small & medium enterprises.


OLD Definition:

Small and Medium-Sized Company (SMC) as defined in Clause 2(f) of the Companies (Accounting Standards) Rules, 2006: (f) “Small and Medium-Sized Company” (SMC) means, a company

  • whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;
  • which is not a bank, financial institution, or an insurance company;
  • whose turnover (excluding other income) does not exceed rupees fifty crores in the immediately preceding accounting year;
  • which does not have borrowings (including public deposits) in excess of rupees ten crores at any time during the immediately preceding accounting year; and
  • which is not a holding or subsidiary company of a company that is not a small and medium-sized company.

New Definition:

The 388-page notification has defined small and medium companies as :

whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;

which is not a bank, financial institution, or an insurance company;

Turnover below Rs 250 Crores  in the immediately preceding accounting year;

which does not have borrowings (including public deposits) in excess of rupees Fifty crores at any time during the immediately preceding accounting year; and

which is not a holding or subsidiary company of a company that is not a small and medium-sized company.


Applicability

https://taxguru.in/company-law/companies-accounting-standards-rules-2021.html

MCA has notified Companies (Accounting Standards) Rules, 2021 on 23rd June, 2021.

3. Accounting Standards.- (1) The Central Government hereby specifies Accounting Standards 1 to 5, 7 and 9 to 29 as recommended by the Institute of Chartered Accountants of India, which are specified in the Annexure to these rules.

(2) The Accounting Standards shall come into effect in respect of accounting periods commencing on or after the 1st day of April, 2021.


 

TODAY, 3.30pm. Seminar on TDS on Goods.

TODAY, 3.30pm. Seminar on TDS on Goods.

IamSMEofIndia
presents
Special Session on
Important changes in TDS/ TCS laws applicable from 1st July


Speaker: Sangeet Kr Gupta, FCA.


Why you must attend:
• You will have to change your Invoicing Software …
• Did you contact all your customers ? Got Revised PO ? Told them ?
• Did you contact all your vendors for this till now ? … Told them ? Revised their PO ?


Penalty for Non Deduction of this 0.1% is very big. You realised that ?

• Only 10 working days left


Who must attend:
Owners, Accounts, Purchase and Sales Dept personnel
Join Zoom Meeting
👇
https://us02web.zoom.us/j/83183324121?pwd=Rm9lVU9NMy93OUY0WDNWSzV0TUVHdz09

Meeting ID: 831 8332 4121
Passcode: 756442


Programme Conducted by
IamSMEofIndia🇮🇳, www.IamSMEofIndia.com

Job description : Title : Chartered Accountant for Accounting BPO

Job description : Title : Chartered Accountant for Accounting BPO

 

https://www.naukri.com/job-listings-Chartered-Accountant-For-Accounting–MLG-Associates-Faridabad-2-to-7-years-110621000313


Intro of company :

MLG Associates, Chartered Accountants. CA Firm in Faridabad.

Already we are a team comprising 8 (Eight) CAs, 3 Company Secretaries, and about 25+ other members, all from a Single Office

Our biggest division is our Accounting BPO.

Here we serve various Corporate Customers with Total ( Aggregate ) Turnover of about Rs 450 Crores per annum ( Financial year 20-21, despite Covid19 ). And handle their every Accounting Dept work, from Data entry, to Bank Reconciliation, to GST returns, to TDS payments, to Cheques / NEFT / RTGS Preparation, to Balance Sheet Finalisation, to submission of all details to the External Auditors and replying to Letters and Notices from Tax Authorities, when required.

Job Description for you will be :

  • Main Task = Manager / Senior Manager BPO Accounting Assignments
  • All tasks related to Corporate Accounting outsourcing operations like Procedural part of TDS, GST, 2A reco, Monthly Balance Sheet work

Location of Posting : Crown Plaza Mall office, Sector 15A, Faridabad.

Desired Candidate Profile : Education = CA Completed, and CA-Final ( not pursuing )

Experience : 5 years post qualification

Full Time, Permanent
Accounts
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