Blog

2018

All you need to know about Micro Small and Medium Enterprises MSMEs

What’s MSME?
MSME stands for Micro, Small and Medium Enterprises. MSME represents a collection of all small to medium sized enterprises in an economy. In a developing economies like India, MSME play a vital role in growth of the economy.
In this article, we shall discuss and understand following points in relation to MSME industries from Indian perspective.

Archive


2018

UnderstandingAccounting Cycle

Maintaining Books of accounts of an organisation is a systematic process involving well defined steps. Such process involve recording, classifying and summarizing of economic transactions carried out by a business during a particular accounting period. The ultimate purpose of maintaining books of accounts is to generate useful information about entity's financial position. Hence, the end result of an accounting cycle is generation of Financial Statements like Profit & Loss Account (aka Income Statement) and Balance Sheet. In this article we shall understand each step involved in accounting cycle of an entity.

2018

Frequently Asked QuestionsFAQon Limited Liability Partnership

Introduction:
Limited Liability Partnership (LLP) is a new model of business formation which gives benefits of both world. In other words, LLP is a form of business that combines benefits of both company and partnership firm. LLP is a type of partnership firm where partners have limited liabilities unlike the traditional model of partnership firm where all partners have unlimited liability. In LLP each partner is independent from any liability towards another partner's misconduct or negligence. Moreover, an PPL has less compliance burden as compared to company form of business.
Limited Liability Partnership being a relatively new form of business, many people are unaware of its features, benefits and compliance requirements. Here is a list of FAQs for all matters related to LLPs.

2018

Understanding Provisions and Accounting Treatment of Provisions

At the end of the financial year when books of accounts are closed, certain provisions need to be created. The practice of creating provisions is in line with Matching Principle of Accounting. According to Matching principle, expenses incurred in a financial year must be recorder in the same financial year to which it relates. However, sometimes the exact amount of expense is not known at the end of financial year. Provision is created in order to recognize such accrued expenses for which exact amount is not yet known. Hence, a Provision for expense basically recognizes the liability of an organisation towards expenses related to a financial year. Please refer to the below points to further understand provisions.

2018

Penalties for non compliance under GST

One of the remarkable changes that GST brought with its implementation is greater emphasis on compliance on part of an assessee. GST Act prescribes several provisions related to interest, penalty, fees and even imprisonment in case of severe defaults. We all take care of the major compliance requirements like filing returns regularly, charging the right type of tax (i.e. CGST & SGST or IGST), charging appropriate rate of tax etc. However, we often ignore small rules and guidelines prescribed by GST Act thinking they are too sundry to follow and they hardly attract any penalty or fees. Notwithstanding the scale of compliance requirement, we must be aware that even the minor case of non-conformance may attract considerable penalty in monetary as well as non-monetary terms. Here is a list of such small non-conformance that all tax payers under GST must bear in mind.

2018

Zero Rated Supplies under GST

In order to promote exports, Government provides many benefits and reliefs to export houses time and again. One such benefit provided by current Government is treatment of export of goods and/or services as "Zero Rated Supplies". Any supply of goods and/or services as an export shall be treated as "Zero Rated Supplies" even though such supplies are taxable under GST in domestic market. This move reduces the prices of commodities or services being exported and increases competitiveness of our product / services in the international market. Moreover, higher exports also means greater balance of payment for Government.

Financial Management