Acco-Tax Solutions ATS

10/06/2023

Time for filing Income Tax Returns...
Last date 31st July 2023

BE AN EARLY FILER

11/05/2023

Notification No. 10/2023 – Central Tax

E-Invoice Applicability limit reduced to Rs.5 Crore from 1st August 2023

01/04/2023

Audit Trail Compliance [w.e.f 1-4-2023] ICAI issues Guidance Note

Business Owners attention: It is not going to be deferred any more.

Management is duty bound to comply with following w.e.f 1-4-2023:-

a. Records an audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made; and
b. Ensuring that audit trail is not disabled

Auditor need to comment on maintenance of audit trail on the following:

a) Whether the audit trail feature is configurable (i.e., if it can be disabled or tampered with)?
b) Whether the audit trail feature was enabled/operated throughout the year
c) Whether all transactions recorded in the software are covered in the audit trail feature?
d) Whether the audit trail has been preserved as per statutory requirements for record retention?

Quick Initial Thoughts by reading ICAI Guidance Note:

1. If Company uses multiple software related to Books of Accounts like Inventory Management Software, Fixed Asset Software, Payroll Software separately in addition to Accounting Software. Company has to enable audit trail feature in the aforementioned software.
(Auditor has the responsibility to comment on the same.)

2. Business Owners (who take services of Outsourced Book Keepers / Payroll processing services etc.) have to ensure that SOC Type 2 Report [Service Organization Control Type 2 Report SAE 3402 - “Assurance Reports on Controls at a Service Organization”] should comment on compliance on Audit trail enabling, no tampering as well as preservation of the same at / by Service Organization.
(Action point: Obtain fresh SOC Type 2 audit report.)

3. Inventory records maintained in M S Excel Sheet should be discouraged.
(Action Point: Use Inventory Management ERPs)

On a lighter note, nothing above is applicable to Books of Accounts maintained manually. “Old is gold but not practical in this digital era”

Happy reading and ensure strict adherence of the same.

Feel free to contact us for deeper discussion/assistance.

01/02/2023

Highlights of Union Budget 2023-24.
General

1. EPFO Numbers doubled to 27 crores
2. Agriculture accelerator fund to boost startup in Agri sector. Special scheme to boost fisheries
3. 38,800 teachers will be employed in 3.5 lakh Eklavya tribal school.
4. Capital outlay of Rs. 2.40 lakh crore for Railways.
5. 50 New Airports and Heliports to be made.
6. Rs. 10,000 crore for urban infra fund every year
7. Rs. 75,000 crore for 100 transport infra projects
8. 3 Centers of Excellence for “Artificial Intelligence” will be set up.
9. KYC procedure to be simplified. PAN to be come common business identifier.
10. Scope of Digi locker to be increased.
11. More than 39,000 compliances reduced. Jan Vishwas Bill to amend 42 laws
12. Rs. 35,000 crore for Energy transmission
13. 10,000 bio input research centers to be set up.
14. 30 Skill India International centers to be set up.
15. NFIR (National Financial Information Registry) to be launched for financial strategy.
16. Reducing cost of MSME Credit by 1%. Infusion of Rs. 9,000 crore in corpus for MSME credit.
17. ‘Mahila Samman Bachat Scheme’ for Women for Rs. 2,00,000 @ 7.5%
18. SCSS enhanced from 15 lakh to 30 Lakh.
Direct and Indirect tax
1. Promote domestic manufacturing and exports.
2. Tax exemption on Capital Goods and Lithium batteries.
3. Mobiles, camera lenses to become cheaper.
4. Gold, Silver & Diamonds, ci******es, imported rubber to get expensive.
5. Enhanced limit for 3 crore and 75 lakhs for presumptive taxation.
6. Higher TDS limit of RS. 3 cr for Cooperatives
7. New IT Return Form for easier filing .
8. 100 Joint Commissioners to be appointed for disposal of small appeals.
9. TDS reduced on EPF withdrawal
10. Section 54 and 54F to be amended.
11. Rebate limit increased to 7 lakh in new tax regime.
12. Number of slabs reduced from 7 to 5 in new tax regime.
13. Only 5% tax on Individual’s Annual income of 9,00,000 only to pay Rs. 45,000 as tax.
14. Salaried class and pensioner: Standard Deduction increased
15. Highest tax rate 42.74 % reduced
16. Propose to reduced Higher surcharge rate from 37 % to 25% in new tax regime.
17. Leave Encashment: Limit increased from Rs. 3,00,000 to Rs. 25,00,000.

26/01/2023

26/09/2022

GST - E INVOICING SYSTEM

NOTIFICATION No. 17/2022 – Central Tax - In the said notification, in the first paragraph, with effect from the 1st day of October, 2022, for the words “twenty crore rupees”, the words “ten crore rupees” shall be substituted.

06/07/2022

New TDS provision u/s 194R effective from 1st July 2022:

A person, responsible for giving out any benefit or perquisites to a resident arising out of business/ profession, whether it's convertible into money or not, requires to deduct TDS @ 10% on such aggregate amt.

Provided that no TDS if value doesn't exceed 20k in a year.

In case of Individual or HUF whose turnover, gross sales, gross receipts during the preceding FY doesn't exceed 1 cr and in the case of profession, gross receipts doesn't exceed 50 lacs, the provision of 194R will not be applicable.

Scenario where this TDS will be applicable:

Whether benefits to employees under 17(2) is covered:
No, because it covers only in the course of business/ profession

Sponsored trips to clients:
Yes, achieving targets and sponsoring trips for clients would be covered as non-monetary benefits and would be liable for TDS

Prize Money awarded on winning lottery/ Games: Rummy India/ Dream11, Teen patti:

No, since this is not a benefit given in the course of business/ profession as it arises as a reward of making a payment towards playing/ gaming

Diwali/ Festive gifts to Suppliers:
Yes, this is a benefit in the course of business, TDS will be applicable.

Turnover Discount:

No, the amount is not in the form of any benefit as it will only reduce the amount of supply, so no TDS would be required.
However if the same is termed in the agreement/ contract as an incentive, TDS will be deductible.