Find out the Best Auditing Assurance Company in Chennai

Economic prosperity has changed the structure of chartered accountant services in India.  A Chartered accountant in India has multitude job roles ranging from monitoring reviewing and reporting various financial activities, providing advice on tax legislation and also advising on how to improve the business. A certified public accountant plays a leading role in handling all kinds of financial affairs with elan.

Functions of a Comptroller

Some of the important functions of actuary are the following:   

·         The preparation of financial statements.

·         Organize financial plans.

·         Looking after audits.

·         Filing of taxes.

·         Bookkeeping and so on.

Keeping abreast of financial statements can help track shortages in cash flow and loss of margins. A qualified accountant can help you in this regard; prepare all your accounts with a lot of dexterity and promptitude.

With the world economy taking giant strides towards progress, a business can only thrive with the right financial advice. However, a recorder is not there to only keep your business buoyant but also he/she helps to figure out ways to increase the margin of profits and thus help your company grow.

The role of a chartered accountant Chennai or anywhere else for that matter changes according to the changing needs of companies. While your business flourishes, the requirement of taxes and the procedures will undergo a change as well. In accordance with changing regulations, a registrar can come up with a tax strategy to reduce the amount of taxes needed to be paid to the government. Since tax laws are always changing, you will definitely need the services of an able CA to handle the management of accounting techniques and plan and prepare according to the State’s observation of regulations.

VRamaratnam & Company is renowned audit firm in Chennai and will help in compliance with the right reporting standards. Some of the important by-products of the audit process are identifying the important internal management problems and arming you with the right insight to solve both present and future challenges.

The fundamental rules of the business have hardly changed. If you want to meet with the investor expectations you must ensure that your presentation embodies accuracy, completeness and a competency in all your financial statements and disclosures. The audit helps sustain confidence in the company along with the financial system at large. This helps cater to the constantly-evolving business reporting environment.

Vramaratnam uses a single, global audit methodology that complies with the International Standards on Auditing, and evolves constantly to meet up with fresh standards. They focus on independence, quality, transparency and brand-new methodology that meets up with professional standards, and of course, adds the requisite value for your organization and stakeholders.

Chief Differences Between Professional Tax and Income Tax

 

We often confuse with the terms Income Tax and Tax Deducted at Source (TDS) while filing our tax returns. So, before you file your returns keep a tab on certain terms to avoid any sort of confusion.

The Simple Differences between Income Tax and TDS:

1) Income tax is administered on all individuals or corporate for whatever may be the income limit above the tax limit for a particular time frame.

TDS, or rather tax deducted at source, here the tax is deducted at the source of income, just assuming that you have a taxable income.

2) You pay income tax based on your annual income, whereas TDS is deducted at source on a regular basis in the particular year.

3) A taxpayer is required to pay income tax on his total annual income, whereas TDS is can only be regarded as the partial contribution to his total annual income.

4) When it comes to the TDS, the payer deducts the tax and is paid to the Government by the payer on the payee’s behalf. It is expected of the taxpayer to pay the income tax. 

5) Suppose the taxpayer's income is much below the taxable limit and the TDS is still deducted then he can claim the TDS when he files his returns. TDS is particularly deducted from salary income, fixed deposits and so on. 

Conclusion

When the financial year draws to an end your total tax liability is calculated and the number of TDS deducted is subtracted from the total tax liability.

In some cases, the TDS is not applicable especially when the net taxable income is much lower than the taxable limit of Rs 2,50,000 for a person and Rs 3,00,000 for Senior Citizen.

When you file your returns you must ensure that you have taken into account all the TDS deducted and you can claim for the same mentioning the amount.

Suppose you have not received your tax credit statement from your employer or bank then you can file your returns by checking the form 26AS which provides you the required credit information. 

You can seek the help of a Tax consultant in Chennai, or wherever you are based for professional tax registration so that you can file your returns without any problems. Ensure you file your returns in proper time to avoid fines, same goes for professional tax too, that is why you should seek professional help if you are clueless about the proceedings. 

Goods and Service Tax - A Detailed Explanation

India has joined the bandwagon of indirect tax reforms. The Empowered Committee of the State has announced in the first discussion paper on 10.11.2009, that there will be a plan to levy a “Dual GST Scheme” in India, read both the Center and the States will have the power to levy the GST taxes.

The scheme though originally was supposed to be realized from 1st April 2016, several hurdles pushed the date further as the ruling party did not have the majority in the Rajya Sabha back then. Most of the states too expressed their grievances against the tax for one reason or the other.  

Constitutional alteration - While the Center has the power to impose the GST tax services till the production stage, the States have the onus to tax sale of goods. While each of powers cannot be swapped with one another as the States cannot levy a tax on supply of services while the Centre cannot impose a tax on the sale of goods. The Constitution does not put the power baton on any one of them (State or Center) exclusively, to levy a GST tax. Furthermore, the Constitution falls short of empowering the States to levy import taxes. Therefore, the Constitutional Amendments empower the Centre to levy taxes on the sale of goods and States and also to impose both service tax and import tax.

What is Goods and Services taxes?  Goods and Service Tax or (GST) is a comprehensive tax levied on the manufacture, sale, and the consumption of goods and services. The Center and the State governments do away with all the indirect taxes.

GST is levied on goods and services under which it is mandatory for each person to pay tax, GST filing 2018 on his output and is imperative to pay the (ITC) or input tax credit on the tax paid on its inputs and outputs. 

Aims and objectives of GST: 

The Goods & Service Tax ( GST Annual ReturnsDue by Dec 31) aims to do away with the double taxation or the cascading effect of taxes on both the production and distribution cost of goods and services. Eradicating the cascading effects of the tax on tax which burdens the final consumers will greatly improve the competitiveness of the ultimate goods and services in the market. This competitiveness has a number of positive repercussions and one of them is certainly a positive impact on the GDP growth of the country.

It goes without saying that the Introduction of a GST substituting the existing multiple tax structures of Centre and State taxes is certainly welcomed with open arms by the consumers. GST will most importantly eliminate the cascading effect on the sale of goods and services. This will impact the cost of goods. The cost of goods shall also decrease chiefly because the tax on tax effect will be done away with, forever. 

GST is transparent and embodies current technology. As most of the activities related to the GST is technology-driven. Activities such as registration, application for refund, filing returns, and response to notice are all completed on the GST Portal. This accelerates the entire process. The GST regime is likely to bring a whole new era in the country and the common people will certainly benefit from it in the long run.

Full Overview of Tax Structure in India

India has a competent tax-structure system and it caters to a humongous population. Like it or lump it, you just cannot ignore taxes, as it is the largest source of income for the government. This money is then utilized for different purposes and projects which then can lead to the development of the nation. 

 Central and State Governments along with local authorities such as municipal corporations call the shots on taxes. The government is unable to levy any tax unless it is passed as a law.

Here are some of the important features of the taxation system in India. Get a better understanding of this from tax consultants in Chennai or CA firms in Chennai. A responsible citizen is one who understands the tax structure and caters to the norms associated with it. 

1.       The Important Role of the Central and State Government

There are specific roles for both of the central and state government. The Central Government of India imposes taxes like customs duty, service tax, income tax, and central excise duty.

The state governments, on the other hand, imposes taxes such as professional tax, income tax on agricultural income, value-added tax (VAT), land revenue, state excise duty, and stamp duty. The local bodies are also allowed to collect some taxes such as property tax, octroi and some other taxes on different services such as drainage and water supply.

2.       Different Types of taxes

Taxes can be categorized under two headings namely direct and indirect taxes. The implementation of the two is what separates the two, in other words, there lies the difference. The assessee pays the direct taxes and indirect taxes are levied on goods and services.

A) Direct taxes

Direct taxes are administered to individuals and corporate entities and simply cannot be transferred to others. The plethora of taxes include income tax, gift tax, and wealth tax.

Income tax

According to the Income Tax (IT) Act, 1961 every assessee with total income more than the maximum exempt limit has to pay this tax. Both the tax structure and rates are annually prescribed by the Union Budget. This tax is imposed at the time of each assessment year, starts on 1st April and ends on 31st March.  

B) Indirect taxes

Indirect taxes are, as the term denotes, not directly paid by the assessee to the government authorities. These indirect taxes are levied on goods and services and collected by those who sell goods or offer services. Check out the most common indirect taxes in India. Some of the important indirect taxes are value-added tax (VAT), customs duty, octroi, excise duty, service tax, and goods and services tax.

3. Revenue Authorities

CBDT or The Central Board of Direct Taxes is an integral part of the Department of Revenue under the Ministry of Finance. This body not only provides inputs for policy but also plans direct taxes in India besides being responsible for the administration of direct tax laws via the Income Tax Department.

CBEC
The CBEC or The Central Board of Excise and Customs is like the CBDT is also an integral part of the Department of Revenue under the Ministry of Finance. It is a nodal national agency whose services include administering central excise duty, customs and service tax in India.

CBIC

Under the GST regime, the CBIC or the Central Board of Indirect Taxes & Customs provide post-legislative approval. The CBIC would look after all the directorates, field formations and provide assistance to the government in policy making in lieu of GST, continuing with central excise duty levying customs functions.

The Indian taxation system has undergone several modifications over the years. The income tax rates have been standardized providing income tax rates with simpler governing laws helping common people understand the same.