1. TIPS TO BE AN EFFECTIVE ACCOUNTANT CA CHANDRESH CHHEDA THURSDAY 16-02-2012 CA CHANDRESH CHHEDA1

2. MAIN FUNCTION  TO PREPARE BOOKS OF ACCOUNTS ON THE BASIS OF VOUCHERS AND OTHER RELEVANT DOCUMENTARY EVIDENCE RESULTING INTO PREPARATION OF FINAL ACCOUNTS i.e. PROFIT & LOSS A/C AND BALANCE SHEET. CA CHANDRESH CHHEDA2

3.  BUT  This is not enough for being an effective accountant… CA CHANDRESH CHHEDA3

4. ADDITIONAL RESPONSIBILITIES  COMPLIANCE REQUIREMENTS  UTMOST USE OF INFORMATION TECHNOLOGY  FOCUS ON RISK MANAGEMENT & INTERNAL CONTROL CA CHANDRESH CHHEDA4

5. COMPLIANCE REQUIREMENT  Income Tax (TDS Provisions)  Vat  Service Tax  Excise  Professional Tax  PF  ESIC CA CHANDRESH CHHEDA5

6. INCOME TAX-TDS PROVISIONS TDS RATE FOR F.Y. 2011-12 Nature of payment made to ResidentThresholdCo/firm, co-op soc, L.A Indiv & HUF If NO/ Invalid PAN SecDescriptionRate 194AInterest-payable by banks Interest-payable by others 10,000 5,000 10 20 194BWining from lotteries/crossword10,00030 194C Payment to contractor-single transaction Payment to contractor- Aggregate during FY 30,000 75,000 2222 1111 20 194DInsurance commission20,00010 20 194HCommission/brokerage5,00010 20 194 IRent Rent-Plant/Machinery 1,80,000 10 2 10 2 20 CA CHANDRESH CHHEDA6

7. Nature of payment made to ResidentThresholdCo/firm, co-op soc, L.A Indiv & HUF If NO/ Invalid PAN SecDescriptionRate 194JProfessional Fees30,00010 20 194Dividends other than dividend covered by sec 115-0 2,50010 20 194BBWinning from horse races5,00030 194FRepurchase units by MFs1,00020 194GCommission –sale of lottery1,00010 20 Time of deposit of TDS DescriptionTime of deposit of TDS Tax deducted by a person other than Govt officer where income or amount is paid or credited in the month of march : tax should be deposited by April 30 Where income or amount is paid or credited before March 1: Tax should be deposited within 7 days from the end of the month in which tax is deducted. CA CHANDRESH CHHEDA7

8. TCS RATE CHART DescriptionRate Alcoholic liquor for human consumption1 Timber obtained under a forest lease/ other mode, other forest produce2.5 Scrap1 Parking lots, Toll Plaza Lease and Mine Quarry Lease2 Tendu Leaves5 NOTE: TCS has to be deposited within one week from the last day of the month in which Tax is collected. CA CHANDRESH CHHEDA8

9. GUJARAT VAT  Due Date For Payment For VAT Tax Liability during P YPeriodicityDue Dates Up to Rs. 60,000Quarterly22 nd of the month subsequent to the end of Quarter. Above Rs. 60,000Monthly22 nd of subsequent month NOTE: if tax liability exceeds Rs.10 lacs,compulsory E-Payment is required. CA CHANDRESH CHHEDA9

10. DUE DATE OF E-FILING RETURN  Traders Submitting MONTHLY returns  Those Paying TAX of Rs.5,000 or less In the concerned month- within 30 days of the end of the MONTH.  Those paying TAX of more than Rs.5,000 –within 40 days of the end the MONTH.  Traders submitting Quarterly Return-45 days.  (As per notification dated 15/2/2011 W.e.f DEC.2010 the above time limit as been extended by one month more.) CA CHANDRESH CHHEDA10

11. DUE DATE FOR MANUAL FILING OF RETURNS For traders having lump sum payment permission /whose TAX liability is less than Rs.60,000-within 45 days of end of the quarter For all other traders not require to E-File – within 30days of end of the Month. In Refund cases If Import/Export- Monthly Others-Quarterly CA CHANDRESH CHHEDA11

12. SERVICE TAX COMPLIANCE  PAYMENT OF SERVICE TAX  if e-payment is done then effective due date will be 6 th (up to 8pm)of the succeeding month/quarter if Service Tax Liability exceeds Rs. 10 Lakhs. Individual, Proprietorship, PartnershipCorporate Entities, Trust & Soieties Value realizedDue DateValue RealizedDue Date April to June5 th JulyMarch31 st March July to September5 th OctoberOther months5 th of succeeding month October to December 5 th January January to march31 st march CA CHANDRESH CHHEDA12

13. FILING OF ST-3 RETURNS  W.e.f period commencing from 1/4/2011 half yearly returns are compulsorily require to be e-filed. PeriodDue Date April to September25 th October October to March25 th of April CA CHANDRESH CHHEDA13

14. EXCISE DUTY: PERIODICAL RETURNS FormDescriptionWho is require to fileTime limit ER-1 Monthly return by large unitsManufacturers not eligible for SSI concession 10 th of following mth. ER-2 Return by EOUEOU units10 th of following mth. ER-3 Quarterly return by SSIAssesses availing SSI concession 20 th of following qtr. ER-4 Annual financial information statement Assesses paying duty of Rs. One crore or more per annum through PLA. Annually, by 30 th Nov. of succeeding year. ER-5 Information relating to principal inputs Assesses paying duty of Rs. One crore or more per annum through PLA and manufacturing goods under specified tariff heading Annually, by 30 th April of current year. ER-6 Monthly return of receipts & consumption of each of Principal Inputs Assesses who is required to submit ER-5 return 10 th of following month ER-7 Annual Install capacity statement All assesseeAnnually on or before 30 th April. CA CHANDRESH CHHEDA14

15. PROFESSIONAL TAX  Professional tax is to be paid by 30 th sept. of relevant FY to local authorities by businessmen on the following bases:  Professionals have to pay PT @ Rs.2000 pa. ParticularsAmount of Professional TAX Turnover less than Rs.2,50,000NIL Turnover Between Rs.2.5 to Rs.5.0 lacs500 Turnover Between Rs.5.0 to Rs.10lacs1250 Turnover above 10 lacs2400 CA CHANDRESH CHHEDA15

16. PROFESSIONAL TAX TO BE DEDUCTED FROM SALARIES PAID TO THE EMPLOYEES OF PRIVATE SECTOR Salary limitRate 1. Salary < Rs.3,000NIL 2. Salary > Rs.3,000 but < Rs.6,000Rs. 20 pre month 3. Salary > Rs.6,000 but < Rs.9,000Rs. 80 pre month 4. Salary > Rs.9,000 but < Rs.12,000Rs. 150 pre month 5. Salary > Rs.12,000Rs. 200 pre month CA CHANDRESH CHHEDA16

17. PF, ESIC COMPLIANCE TypeDescriptionResponsibility PF ESIC PF Contribution 12% of Baisc+DA Of which 8.33% or Max Rs.541 for Pension Fund 1.75% of Wages 4.75% of Wages Admin charges 1.1% of Basic+DA Employee Employer Employee Employer DateDescription 10 th Payment of PF 21 st Payment of ESIC 25 th PF form 12A. 12 th MayESIC from 5. 11 th NovESIC from 5. CA CHANDRESH CHHEDA17

18. UTMOST USE OF INFORMATION TECHNOLOGY  Wherever possible use of software's should be made, like  Pay roll Accounting.  Billing Software.  Stock- Quantitative records, etc. CA CHANDRESH CHHEDA18

19. FOCUS ON INTERNAL CONTROL 1.ANALYSING AND RECORDING TRANSACTIONS 2.ADJUSTMENTS AND FINANCIAL STATEMENTS ( ADJUSTING ENTRIES, ACCRUDE REVENUE, ACCRUDE EXPENSES, UNEARNED REVENUES, PREPAID EXPENSES, DEPRECIATION.) CA CHANDRESH CHHEDA19

20. INTERNAL CONTROL(Continues…) 3. COMPLETION OF ACCOUNTING CYCLE (CLOSING ENTRIES, POST CLOSING TRIAL BALANCE, REVERSING ENTRIES, CORRECTING ENTRIES.) 4. INTERNAL CONTROL WITH REGARDS; CASH RECEIVABLES INVENTORIES OPERATING ASSETS (COST OF ASSET, DEP., IMPROVEMETNS, DISPOSAL OF ASSET, ETC. ) CA CHANDRESH CHHEDA20

21. Thank you CA CHANDRESH CHHEDA21