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2017

Top Five Challenges and Solutions of GST for AccountantsJuly 1, 2017 is a phenomenal date when India has made a history by implementing ‘One Nation, One Tax’ approach. Yes, GST (Goods and Services Tax) is indeed the biggest reform of our country that brings a few challenges and a lot of opportunities for our accountants. It is considered as a ‘Game Changer’ for Indian business as it will cause a long-lasting impact.

As we are passing through the transition phase from the traditional approach of many destination-based taxes to the one origin-based tax- GST regime, it is obvious that the accountants have to put extra efforts to grab the opportunities.

2017

Important Accounting Terminologies - "Deferred Revenue Expenditure"

The modern accounting system of double entry book keeping is based on certain principles and standards. One of them is the concept of matching costs with the revenue or benefits derived from such costs. However, in real life business scenario, not all income and costs directly match up with the goods and services sold or the assets purchased. In many cases, the cost is incurred at present but value received from such expenditure is actually delayed over time. According to generally accepted accounting principles, money and value should be matched whenever possible. This means that a business must account for expenditures that may not immediately generate profit in the current accounting period. 

While revenue expenditure is a simple concept, deferred revenue expenditure is slightly more complicated. In this case, the value received from the expenditure is not immediate.

2017
Goods and Services Tax is a game changer tax reform in India. Though Government has tried to keep the tax structure simple, there are still many misconceptions prevailing amid consumers. Not just businesses or tax professionals, the common consumers must also keep them well informed about GST so that we can discourage the malpractices by traders post GST implementation.

Charging GST over and above MRP Value:

Some shop keepers are found charging GST over and above MRP of the products. This is especially true in rural areas where consumer awareness is lower regarding GST rules. Please make sure you only pay the MRP. If any shop keeper is found charging GST over and above MRP, refuse to pay the same. Also, inform about such incidences to National Consumer Forum on toll free number or online.

2017

In the world nothing can be said to be certain, except death and taxes
– Benjamin Franklin

  • Quoted above is the famous statement by Benjamin Franklin about the inevitability of taxes in our life. This has increasingly become a reality in India after the Central Government’s efforts to reduce tax evasion and to bring more and more people in the tax net with the help of policy measures and analytics. However, the Income Tax Act has kept some windows open for the people, particular in the middle income group, to reduce their tax burden smartly. These come in the form of deductions, exemptions etc.
  • One such window for us to save tax smartly is “Benefit of Shifting LTCG to Basic Exemption Limit”. The topic under discussion today is related to reducing tax liability arising from Long Term Capital Gain. Let us first understand briefly as what is long term capital gain?

2017
  • World Trade Organization is a global intergovernmental organization that acts as the regulator in international trade among its member countries.
  • On 15th April 1994, 123 nations of the world signed Marrakesh Agreement which led to inception of the WTO.
  • Following the Marrakesh Agreement, WTO came into existence on 1st January 1995.
  • As of now it has 164 members. WTO is the largest international economic organization in the world.

2017
  • The tax department on Friday issued warning against those who undertake benami transactions as this would invite Rigorous Imprisonment (RI) of up to seven years under the normal I-T Act.
  • The tax department said the government will soon operationalize a 'Strong Team' to effectively deal with benami properties as well undisclosed foreign income and assets.
  • The Central Board of Direct Taxation (CBDT) is planning to form a special unit, which will dedicatedly investigate and act against 'benamidars' and black money holders having undisclosed foreign income and assets.

Financial Management