Tax relief in respect of COVID related receipts and Ex-Gratia payments – Finsmart

Covid 19 has caused hardships to many and even business units have also suffered by loosing their employees to Covid virus

On this background – many employers have offered to provide lump sum compensation to the family members of deceased employee

So there was no clarity regarding taxation of the same earlier which has been brought now

The Central Board of Direct Taxes said that any sum received by taxpayer from employer or any person towards COVID-19 treatment during FY 2019-20 and subsequent years shall be exempt.

Further, in case of death due to COVID-19, ex-gratia payment received by family members of employee from employer shall be fully exempt and exempt upto Rs. 10 lakhs where received from any other person.

This is a good move on the backdrop of hardships endured by family members of deceased employee and the government is proposing to amend the law accordingly

As Business Owner are you sure about your Tax Compliances ? – Finsmart

It is no secret that India has stirred huge interest among various domestic and overseas investors wanting to enter the Indian SME market. You surely understand the opportunities, and therefore the urgency to stay ahead in your business. However, one of the most challenging job is to stay updated on compliance and regulatory requirements.

How many Business Owners today can confidently say that they are 100% compliant?

What are you doing to mitigate the risks associated with compliance?

The Government policies are evolving, new laws gets enacted, and amendments to the existing ones keep happening. These are all not very simple to understand, at times ambiguous creating confusion and even more difficult to implement them. How prepared are you to handle all this?

Any laxity in compliances today proves to be fatal since it boils down to paying  heavy interests and penalty. And taking toll of Business Owners time and mental bandwidth which could have been otherwise used in the business growth.

Given the way SMEs operate their businesses, with unstructured processes, loose financial discipline and improper documentation leads to a high risk on missing compliance. And today whether GST, TDS, TCS all have become a monthly or quarterly filings. Most times the accounting team aren’t able to provide the financial statements in time before the compliance deadlines so there will be no time to evaluate or discuss the same. In lot of cases even the financial statements may not reflect the correct financial performance of the business and in hush-hush the statements are filed to meet the deadlines just making sure that you keep dealing with notices from the departments and paying lawyers’ fees.

With more automation and rigor on compliance on regulatory side, there’s isn’t any choice with the today’s organisation but become compliance ready. Outsourcing your Accounting, Payroll and Compliances or setting up in-house department with right financial processes is key to mitigate your risks. But setting up in-house full-fledged finance department still will eat into Business Owners bandwidth in terms of managing these talents. The right outsourcing partner will ensure you are upto date on your Accounting, Compliances without much headache and at an affordable cost. So whichever way you go ensure you are on the right path to compliances.

 

Are you compliant ready? Well, team Finsmart is just a call away in case you need help.

 

www.finsmart.com is one stop solution for all your Accounting, Payroll and Compliances needs. We specialise in managing Indian Entity of Global MNCs , Technology Companies and New Age businesses. Our Controller/CFO Services ensure as Business Owner you are on top of your Growth Metrics.

Are you ready for March 2020? – Finsmart

The Indian Financial Year starts from the 1st of April and ends on 31st March every year; therefore all the businesses and individuals must fulfill the important financial obligations by the date to not face any kind of penalty in the future. It is important for all those who follow the mercantile system to ascertain the transactions accrued up to 31st March and to properly record the same information in the books of account. For the businesses that are unable to prepare their financial records by end of March 2020 or experience some financial blind spots can consider outsourcing their finance and accounting functions to the experts who will follow Indian audit and accounts service standards while preparing the accounting books for their clients.

We all need to take care of accounting work and manage accounting books timely so that we can plan our business strategies effectively and in a more systematic way. By taking the help of financial accounting outsourcing services, the businesses can easily offload the financial and tax responsibilities to the right kind of people that will allow you to concentrate on other more important areas. Along with saving your precious time, the professionals will also do a review of the accounting and finance of your business and will help in managing the finances of your company in the best possible way.

By appointing an accountant for managing your business, you can focus on other important areas as the financial and tax responsibilities are been taken care of by the right person which you have hired. Along with saving your precious time, the professionals will save your hard-earned money as well, which can be utilized more effectively and contribute towards more profitably. As a business owner, there are many other important areas where you need to invest your time and in case you are managing the finances of your company as well, then it might result in mismanagement of operational needs. The best way to streamline the process is to opt for outsourcing accounting services as the experts have complete and detailed knowledge of tax legislation and will manage it rightly.

In case you are managing your business and need some professional help to take care of your business, then you can get the best guidance from Finsmart Solutions which is a leading accounting outsourcing services provider in India offering the best and reliable accounting services to all kind of businesses including small, medium and large. The accountants/experts at the company will look at the numbers and will offer the best financial advice which will help you to make your business more successful and growing as well. The management and accounting review done by the experts will help in building a more stable position for your business and that too at the most affordable prices which is totally worth it!!

Do you know 2A reconciliation is must under GST regime? – Finsmart

What is 2A reconciliation under GST regime?

Under the new Central Tax which is being issued by CBIC a few days back has made certain amendments in the CGST Rules. One of the important amendments in the Rules is to allow the credit to the recipient only in case the corresponding supplies have been reported in the GSTR-1 by his suppliers. This move is in line with the amendment made in the return format which will be effective from 1.4.2020. The main reason behind making this amendment is to lower the cases of fake invoices where fraudulent credits have been availed to deceive exchequer. The taxpayers under the new rule must reconcile their data regularly with the data declared by its vendors too. The return filing and processing will be semantically automated and the GST returns are inter-linked.

Before filing the GST returns it is important to reconcile the GSTR 3B with GSTR 2A so that you don’t have to pay any kind of penalty or demand notices from the department. In case a supplier files GSTR – 1 in any of the particular month with the disclosure of the sales, then the corresponding details need to be obtained in GSTR – 2A of the recipient.

For the businesses filing the return can prove to be a complicated tasks, especially post the amendments in CGST Rules, therefore more businesses outsource the services to accounts payable services providers who are experts in managing your tax more systematically.

By using accounting and taxation services, which is the process of outsourcing accounting service and taxation to a company outside of your business, the business owners can capitalize on benefits that previously were not known to them.

Advantages of outsourced accounting services:
• Businesses can have increased profitability by outsourcing accounting and taxation related work to the firms who are highly specialized in it. As a business owner, you will be able to spend more time with your customers and can offer them a higher level of service.

• You don’t need much staff internally who can manage the internal accounting functions. Rather you can make significant reductions in the overall employment costs like salaries, payroll taxes, benefits, training etc by outsourcing the work to an outsource accounting services provider.

• The ability to offer higher quality accounting information is found in the professionals to whom you have outsourced the work. Working with accounting professionals will deliver reliable and accurate information which in turn will help in taking improved business decisions timely.
These are just some of the benefits out of many which you can have by choosing outsourced accounting services, you will get the best professional assistance that keep your business focused on your critical objectives. So get the best guidance by hiring Finsmart Solutions which is a leading accounting outsourcing company in India offering the best and trusted accounting and bookkeeping services to its clients.