accounting financial

5 Reasons to Hire a Finance Consulting Firm

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Finance-Consulting-Firm

The life of a businessman is not easy. You must manage everything from the small to the large. Financial management is not for everyone. This is where the role of a finance consulting firm comes into the equation. Individuals and small businesses can get help from a finance consulting firm to manage and grow their money and assets. They also help their clients with a variety of responsibilities, including financial data, financial forecasting, and investment advice based on their long and short-term objectives.

Financial consulting firms and financial advisory firms are similar terms. Prior to now, a financial consulting firm could only assist with businesses’ transactional needs. Modern entrepreneurs, on the other hand, demand tailored services to increase their company’s efficiency. As a result, their role was redefined and widened. A finance consulting firm now provides a comprehensive service that assists its clients in achieving financial success in all areas.

What qualities should you seek for in a financial consultant?

  • Negotiation Skills of the Highest Order
  • Communication abilities that are both effective and efficient.
  • As required by law, licensed and registered
  • Financial consulting firms must have extensive knowledge of developing financial strategies for many types of businesses.

What Services does a Finance Consulting Firm Provide?

A finance consulting firm examines the entire picture of a client’s finances, including obligations, assets, expenses, and revenue, to assist clients in identifying their objectives. A finance consulting firm with the appropriate licenses can also handle the investments of its clients.

Here’s Why More Companies are Hiring a Finance Consulting Firm

There is no denying that the workforce is changing as a result of new technology and increasing growth needs. The most notable current trend is that an increasing number of businesses are outsourcing staff and consultants. Here are five reasons why hiring a finance consulting firm is the way of the future.

1. Provides You with a Larger, More Complete Perspective of Business

Hiring a professional from a finance consulting firm may help your company and provide you with added security. The finance consultant arrives with a planned company strategy and also tactics, allowing them to see the full picture of your financial status. As a result, financial plans may be evaluated, reviewed, and modified in response to changing company circumstances. Furthermore, it helps your company become more structured and equipped for the future, as well as any challenges that may develop, with contingency plans in place if necessary.

2. Expert Recommendations

Businesses rely heavily on consultants. They have worked in a variety of industries and have a thorough understanding of business dynamics, expert knowledge, and technological advancements and processes. Financial planning by a competent financial advisory firm also assists in putting all the elements of your financial business together, from budgeting to preparing for business development to handling taxes and insurance needs.

3. Tax Benefit

Certain countries’ tax laws are complex, and even the smallest error might result in severe financial consequences. In addition, as a result of their errors, these business owners must pay hefty fines. All of these issues and their ramifications are known to a financial consulting firm, and they are addressed ahead of time. Launching new companies or offering advice on current tax law changes might help minimize your tax burden.

A financial consulting firm can also assist you in lowering your tax obligation by launching new investments for long-term benefits, and tax efficiency, or counselling you on the most recent major reforms.

4. Saves Time

An entrepreneur does not have enough time to analyse each matter carefully. The finance consulting firm is adept at identifying the company’s soft spots, allowing you to devote your time and attention to those aspects of the organization that require it.

As a result, hiring a financial consulting firm is preferable. They are a collection of professionals who can help you manage your financial portfolio properly. This also allows you to focus your time and efforts to more profitable and productive endeavours if you are not burdened with this onerous duty.

5. Stress Relief

A competent financial consultant may relieve a lot of burden from your mind, and your business can profit from the consulting firm’s high financial literacy. You may now relax since you are in the hands of an investing specialist who is handling a wide variety of issues and obstacles that you would otherwise have to deal with on your own. This also leaves more time to keep a watchful eye on the markets.

Why choose us?

In order to maximise productivity in the crucial spin-out areas of your company, Komplytek provides integrated services and adaptable solutions that are smart by design. For finance & accounting, compliance & regulatory, and other operations portfolios, we provide a “One Stop Solution.”

 

GST-Definition & 4 Types of Good & Service Tax

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Types of Goods & Services Tax

The Goods and Services Tax (GST) is a tax imposed in India on goods and services or both, and it went into force on July 1, 2017. The tax was created to replace major existing indirect taxes with a single comprehensive tax.

In essence, Goods and Service Tax combines several indirect taxes into a single tax, making tax compliance management easier for service and commodity businesses. Various indirect taxes, such as the central excise tax, service tax, VAT, entertainment tax, etc., were rolled into the GST. This huge development has made it easier to file a tax return without the challenges that were faced in the past.

What is Goods and Service Tax (GST) and how does it work?

Goods and Service Tax is a destination-based tax applicable on all transactions involving the supply of goods and services or both for consideration subject to exceptions thereof. It is a tax paid on the manufacturing and sale of goods and services throughout the nation. It provides a complete and continuous credit chain. Goods and Services Tax is a single domestic indirect tax law that applies to the entire nation.

What impact will the Goods and Services Tax have on the current indirect structure?

The Goods and Services Tax is an effort to break down geographical boundaries and form a single market within the country. The effect, on the other hand, would not be consistent and would vary from one industry to the next. The ordinary citizen will benefit in two ways: firstly, all taxes will be gathered at the point of usage; and secondly, customers will not be compelled to pay a “tax on tax.”

When a supplier’s location and the place where goods/services are supplied are in two separate states, two different union territories, or a state and a union territory, it is categorized as either an interstate supply of goods or an interstate supply of services. All inter-state supplies are subject to IGST, which is the sum of CGST and SGST/UTGST collected by the Centre.

GST is classified into the following categories:

 

1.The State Goods and Services Tax (SGST)

The State Goods and Services Tax is one of the taxes levied by the state government on the exchange of goods and services. It is imposed on the intra-state supply of goods and services, or both. The Sales Tax, Entertainment Tax, VAT, Entry Tax, and other state taxes are all replaced by the SGST, which is imposed by each state’s state government. The state government is entitled to claim earned revenue under this tax.

2.The Integrated Goods and Services Tax (IGST)

The Integrated Goods and Service Tax is levied on interstate goods and services transactions. When a supplier’s location and the area where goods/services are supplied are in two separate states, two different union territories, or a state and a union territory. It is categorized as either interstate supply of goods or interstate supply of services. All inter-state supplies are subject to IGST, which is the sum of CGST and SGST/UTGST collected by the Centre.

3. The Central Goods and Services Tax (CGST)

The Central Goods and Service Tax is charged on transactions of goods and services that take place inside a state. It was implemented by the Central Government to replace major central taxes such as Central Sales Tax, Service Tax, Central Excise Duty and Additional Excise Duty, CVD and Special CVD, etc. The Central Goods and Service Tax is levied and collected by the Central Government.

4. The Union Territory Goods and Services Tax

The purpose of imposing Union Territory Goods and Services Tax on intra-UT supplies of goods and services is to apply a tax collection to give benefits similar to SGST. It applies to Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, and Chandigarh, which are all Union Territories.

Komplytek is a renowned consultant in Delhi and the NCR. We offer our customers complete Goods & Service Tax solutions, which comprise all services such as:

  • Acquiring Goods and Service Tax Registration
  • Goods and Service Tax returns are generated and filed on a monthly or quarterly basis.
  • Consultancy on a variety of issues
  • GST refund application preparation and filing, as well as follow-up
  • Annual return preparation and filing
  • Cancellation of Goods and Service Tax Number

 

For Business consultation

Get in touch with the Experts today!

 

5 Absolutely Essential Accounting Advisory Services

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Accounting-advisory-service

Accounting advisory services provide a number of services to help businesses deal with the complex and changing business environment they encounter on a variety of issues. Financial data has become more complex as the corporate environment and activities have become more dynamic. In numerous regions, significant changes in economic reporting standards are expected, worsening the problem. Many companies are also working to improve their operations so that they can deliver more accurate financial reporting.

Accounting Advisory Services are an absolute necessity

The increased expectations of management, investors, regulatory authorities, and other stockholders; increasingly complicated financial accounting guidelines; and transaction and evolution issues with mergers, acquisitions, and divestments are just a few instances. In recent years, the need for accounting advisory services has risen dramatically as many businesses are looking to improve their procedures in order to provide timely and reliable financial reporting.

As regulations become more complex, advanced accounting skills that enable strong quality assurance and quality control are more important than ever, but today’s small finance departments experience resource and manpower constraints. When coping with a number of extremely complex accounting domains, such as preparing financial statements, principles and laws, evaluation, financial instruments, and transaction-related accounting, it’s vital to rely on the right help in this competitive climate. The accounting advisory services team at Komplytek can also assist you with all of these issues and more. In addition, when it comes to accounting framework solutions, we provide a comprehensive set of options.

Komplytek’s Accounting Advisory Services for Businesses are available in a variety of forms.

1. Financial Advisory

Many firms seek assistance and guidance on financial goals, forecasting, and projecting in order to prevent unexpected outcomes. We support finance in realizing the full scope of its position in the business age, from financial management to better collaboration with operations and strategic decision-making. We also offer comprehensive accounting advisory services, solutions and strategies based on a clear and diversified set of skills. This allows us to accomplish results through improving company processes and operational strategies. Komplytek create a financial strategy and vision, then fine-tune it once things stabilize.

2. Providing Operational Advisory

An operations advisory is when you assist your clients in establishing better business strategies by understanding and fixing underlying challenges in their businesses. By providing tailored business improvement, we help customers become more efficient and effective. An Operations Strategy is a set of current ideas, processes, and technologies that assist clients in improving key performance indicators over time.

3. Risk Assessment

Komplytek offers solutions and guidelines in the areas of risk analytics and evaluation, reporting and disclosure, and risk data management. This enables organizations in planning, integrating, and enhancing processes and technologies. We can assist with evaluating and monitoring risk implementation strategies against regulatory and industry standards.

4. Assistance in Auditing and Assurance

We offer a variety of audit and assurance and consultancy services to help clients grow and succeed, mitigate risks, and boost performance. An audit and assurance determine where your company stands and allow you to focus on your future steps. We ensure that future goals are based on sound principles, reinforced by relevant data, and also guided by prudence.

5. Transaction Advisory:

In recent years, transaction processing has become significantly more complicated as laws and requirements have significantly evolved. By offering accounting advisory services such as business analysis, mergers and acquisitions, and assessments, transaction advisory services help companies better identify and manage strategic corporate transactions.

We also assist businesses in evaluating the transaction’s risk and return, as well as delivering a customized solution to all operational requirements and accounting advisory services.  They provide you with guidance and support throughout the transactional process, based on their expertise and experience.

 

 Get on a FREE Consultation Call with the Experts today!

 

Advance Tax Definition and Due Dates

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Advance Tax

An advance tax is a tax that an assessee needs to pay as they earn, also known as the “pay as you earn” tax. A person can pay it , before the end of the fiscal year.  The income tax paid for income earned during the same financial year is referred to as the “Advance Tax Payment.” In general, taxpayers are only obligated to pay tax on their previous year’s earnings. The Income Tax Act of 1961 includes a provision for advance tax to guarantee that money reaches the government as soon as possible.

According to Section 208 of the Income Tax Act 1961, every person whose estimated tax due for the financial year exceeds Rs. 10,000 is required to pay tax in advance. Individuals and business owners should pay these instalments by the Income Tax Department’s deadlines.

Who should be responsible for paying the advance tax?

Salaried people are exempt from paying advance tax because their employers deduct it at source (TDS). However, it must be paid if an assessee has any other earnings apart from salary income for which tax has not been deducted at source and the tax liability exceeds Rs.10000. Professionals (self-employed), businessmen, and firms, on the other hand, will be required to pay taxes in advance because their taxable income often surpasses the advance tax payment standard.

When should you make an advance payment of income tax?

The advance tax payment is due in instalments on the dates listed below:

In the case of a non-corporate assessee

By 15th June                                                Nil

By 15th September                                      30%

By 15th December                                       60%

By 15th March                                             100%

In the case of a corporate assessee

By 15th June                                             15%

By 15th September                                   45%

By 15th December                                    75%

By 15th March                                          100%

How can I pay an advance payment of income tax?

People can pay it  at bank branches approved by the Income Tax Department using tax payment challans. It is possible to deposit it with the Reserve Bank of India as well as all other authorized banks. The NDSL website now allows you to pay advance tax online.

Senior citizens are exempt.

Senior citizens who do not earn money from a business or profession are exempt from paying an advance tax, according to Section 207 of the Act. Rental income, pensions, interest from bank savings, and dividends, for example, are all possible sources of income for a senior citizen. As these forms of income do not fall under the income tax head of income from business or profession, senior citizens do not have to pay advance tax. Also, regardless of the amount of income a senior citizen obtains from a source other than a company or profession, they are eligible for this exemption.

Komplytek is a one-of-a-kind company that provides consulting and outsourcing services to businesses from all over the world. Our aim is to transform business implementation services through the integration of human talent and technology that is forward thinking.

We have a team of lawyers and chartered accountants with rich corporate expertise. We ensure that we think like you and serve as an extension of your team rather than an outsourcing partner. For individuals and businesses, our services include preparing tax, GST, filing taxes, finance and accounting, and compliance and regulatory operations. We are based on India’s significant automation of tax systems, which the country is undergoing.

Komplytek will make your income tax return filing effortless so that you don’t have to worry about missing deadlines.

We will help you file your income tax returns in time with the highest accuracy. We can file tax returns for your employees as well to help them focus completely on their work.

 

 

Having queries about Advanced Income Tax? Need help in scaling your small business?

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Financial Accounting: Its Importance and 5 Key Features

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Financial-Accounting

Financial accounting is the process of documenting, assessing, and recording a variety of transactions that arise from a company’s operations over time. The balance sheet, profit and loss, and cash flow statements represent the company’s long-term operating performance.

Financial accounting is the preparation of financial statements that are helpful in measuring the financial performance and position of an entity. The objective of financial accounting is to provide information about the financial health to the potential users of financial statements. Financial accounting helps with decision-making for internal as well as external users. It serves as a starting point for potential investors before making an investment decision.

The Role of a Financial Accountant

A financial accountant is a part of accounting department who plays a very important role in the organization. The responsibilities of a financial accountant are to record the financial transactions and prepare and analyse financial statements at the end of every fiscal year. The foundations of financial accounting are a set of well-known accounting concepts.

A financial accountant adheres to various accounting standards issued by regulatory authorities. These are mostly focused on and congruent with the International Financial Reporting Standards (IFRS). General Accepted Accounting Principles (GAAP) is a term that is used to describe rules developed for the preparation of financial statements. Furthermore, the financial accountant is responsible for budget preparation, tax return preparation, and managing tax payments, ensuring compliance with relevant laws and regulations and performing an internal audit.

The Features/Types of Financial Accounting

In the preparation and examination of financial accounts, there are five main features/types of financial data.

1.Income Statement:

An income statement represents the profit or loss incurred by the entity during a particular period. Hence, it is also known as a profit and loss statement. It includes the revenue earned and expenses incurred in relation to the respective income. It keeps a record of all-day-to-day expenses and income from the business. An income statement helps to learn about the financial performance of the business.

2. The Balance Sheet

The balance sheet shows the financial position of the business at a certain date by classifying the assets and liabilities. Assets are the resources that a firm owns and which provide it with future economic value. Whereas liabilities are the financial responsibilities/obligations of the business that are payable to another person.

3. Cash Flow Statement:

It’s a statement that specifies the sources of funds and their application during a particular reporting period. The cash flow statement considers the opening balance of cash and cash equivalents, adds the cash generated through operating activities, investing activities, and financing activities, and deducts all the cash payments that have occurred. The cash flow statement also helps to identify the historical changes in cash and cash equivalents.

4. Statement of Changes in Equity:

The statement of changes in equity is also referred to as the statement of retained earnings. It represents all the changes in equity and retained earnings during a particular period, hence it helps to reconcile the opening equity balance with the closing equity after considering all the transactions effecting equity.

5. Notes to Accounts:

These notes provide an explanation of the information used in the preparation of financial statements. It included all the information related to accounting policies applied and their changes, if any, capital structure, details of revenue and expenses, method of depreciation, details of assets and liabilities, etc. Notes to accounts are considered supporting documents for the financial reports.

What Is the Importance of Financial Accounting?

Businesses need financial accounting because it allows them to keep track of their financial transactions. As an outcome, they will be better able to allocate their resources wisely. Financial accounting also aids in the presentation of your company’s financial position to outsiders such as creditors and investors. On the basis of the financial statements, the other parties will decide whether or not to collaborate with the company. As a result, internal management uses specialised accounting standards and procedures for the company’s internal evaluation.

Why choose us?

With the upsurge in the intricacy of the business environment across the globe, organisations are facing challenges due to significant amendments in financial reporting standards and accounting guidelines. Therefore, finance and accounting outsourcing have become an emergent trend amongst fast-growing businesses. Efficient financial management also plays an important role in determining the growth and downfall of every organization.

We, at Komplytek, deliver illustrious finance and accounting outsourcing services to enhance and assist the complete finance and accounting function. Our primary goal is to reduce operational expenses, provide high-quality service in a timely manner, and set standards for greater corporate regulation and compliance. Komplytek sets up a user-friendly accounting system on widely used accounting software that will assist your company’s finance programme and define financial strategy.

An Accounting Information System (AIS)

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Accounting Information System

An Accounting Information System (AIS) is a boon to every business. It is a computer-based software used by companies to gather, store, and analyse financial and accounting data. The data is then utilised to provide information to stakeholders.

An Accounting Information System (AIS) keeps a record of all accounting and business activity by integrating conventional accounting methods such as GAAP, i.e., Generally Accepted Accounting Principles, with modern information technology systems. Accounting, reporting, audit, and control functions are all facilitated by the accounting information system.

In simple terms, an Accounting Information System (AIS) is a framework for collecting and storing all the data associated with all the financial transactions of an entity so that CFOs, auditors, managers, and accountants may use it to make decisions. AIS can range from a simple ledger to complex accounting, costing, and financial analysis such as the Statement of Profit and Loss, Balance Sheet, and other reports. One of the most significant jobs of an accountant is to work closely with AIS to ensure accuracy in a company’s financial processes and record-keeping. This information should be easily available and accessible to those who require it.

What is the purpose of AIS in the workplace?

AIS assures that the company’s financial transactions and data are as accurate as possible. It also gives specific individuals access to the data they require while restricting sensitive information to others and safeguarding the company’s overall security. An AIS enhances a firm’s ability to detect fraud and ensure that its finances are in excellent shape. Everyone in the firm may access and recover the same data thanks to a well-designed AIS.

What are the functions of an AIS?

An Accounting Information System enables a company’s various departments to collaborate.

The following are AIS’s three primary functions:

1. Gathering and storing financial data in an efficient and dependable manner:

The role of an AIS is to gather and store data about a firm’s financial activities in an effective manner. This includes the collection, storage, and also processing of financial and accounting data.

2. Providing decision-making information:

An AIS can generate managerial reports and financial statements for executives, CFOs, auditors, and other important decision-makers.

3. Implementing controls:

An AIS can also implement controls to accurately record and process data.

What are the types of Accounting Information systems?

There are three types of accounting information systems:

1. Manual Systems:

Smaller businesses or home-based firms often use manual accounting information systems with no technological incorporation. Due to the small size of the company, the AIS records can be kept manually. For more accurate bookkeeping, a manual system would need source documents, a general ledger, and special journals or subsidiary journals.

2. Legacy Systems:

Existing firms commonly use legacy systems. They were created before information technology became as advanced as it is today. Although it is an outdated Accounting Information System, it does have some advantages. A legacy accounting system has also been tailored to the specific requirements of individual businesses.

3. Modern, integrated information technology systems:

Modern, integrated accounting systems are modern and more user-friendly than traditional accounting systems. As they use the most up-to-date technology in internet interfaces and data storage, these systems are more advanced, efficient, less expensive, and with fewer defects.

Komplytek provides distinguished outsourcing services to improve and support the entire finance and accounting operation. Our team of highly qualified and diversified financial experts also provides services in various industries, including business and individual taxation, audit and review, global tax planning, and more. Accounting and auditing services also include account outsourcing, business taxation, corporate compliance, company creation in India, foreign company registration, and global taxation.

 For more visit us https://komplytek.com/

 

 

GST – Section 16 (2) (aa) Latest Update

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GST

As per Section 16(2)(aa) of Budget 2021, GST input can only be claimed if the invoice is supplied by the party before April 1, 2021.

It will be effective from 01.01.2022

 

The Input Tax Credit (ITC)

The GST paid on the purchase of Goods & Services is known as Input Tax. The Input Tax Credit fundamentally means that taxes paid on inputs are deducted from taxes due on output. According to Section 16(1) of the CGST Act, every registered taxable person is entitled to take credit for input tax paid on any purchase of goods or services being used or aimed to be used in the course and scope of his business, subject to such conditions and limitations as may be recommended and within the timeframe mentioned in section 49, and the said amount shall be credited to such person’s electronic credit ledger.

Section 16(2)(aa) of the CGST Act of 2017 was introduced into the Finance Act of 2021 via Section 109.  The following is an excerpt from proposed Section 16(2)(aa) of the CGST Act, 2017:

In case (aa) the supplier has provided the details of the invoice or debit note mentioned in clause (a) in the statement of outward supplies. Those details are conveyed to the recipient of such an invoice or debit note in the mode specified under section 37;

Section 16(2) (aa) states that ITC can only be claimed if the supplier has provided the necessary information in his GSTR-1.

In simple words, as per the new amendment (aa) to section 16(2) of the CGST Act, an input tax credit on a receipt or debit note can only be claimed if the details of the invoice or debit note were provided by the supplier in the statement of outward supplies. Those details should be conveyed to the invoice or debit note’s recipient.

The Finance Act of 2021 amended Section 16(2) of the CGST Act to include Clause (aa).

It is now clear that ITC claimed on receipts that the supplier did not upload to his GSTR-1, and that must be reversed. The tax/interest/penalty must also be paid under section 73(5) of the CGST Act 2017.

The vendor must now provide the specifics of such a receipt or debit note in GSTR-1, and the recipient will be entitled to the ITC. Although the communication provision was already included in section 37(1) of the Central Goods and Service Tax Act, it is now a requirement to get an ITC.

Such information will be conveyed to the supply receiver as shown in user services > Communication between taxpayers. The receiver must accept the same. A taxpayer can interact with the beneficiary if there is a disparity, such as payment issues or any other issue. 

Why should you work with us?

Komplytek can handle your GST compliance, allowing you to focus on expanding your business instead of worrying about compliance. We will keep track of your GST compliance on the Ledgers GST platform. This will give you access to real-time financial records from anywhere. Ledgers can also sync and integrate with other offline and online programmes you use on a constant basis.

Komplytek offers integrated services and also pliable solutions that are insightful by design. We create huge productivity in the critical spin-out parts of your business. We are a “One-Stop Solution” for finance and accounting, compliance and regulatory, and other operations portfolios. We personalize our solutions to suit your business requirements. Komplytek has a team of lawyers and chartered accountants who bring many years of corporate experience with them. We ensure that we think like you and act as part of your team rather than an outsourcing partner.

Which ITR to File

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ITR

What ITR should You Submit? Types of ITR Forms
The Income Tax Return (ITR) is a document on which a taxpayer provides information to the IRS regarding their earnings and the taxes they owe.
To date, the Income Tax department has issued advisories for ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. Every taxpayer must file their income tax return by the deadline or before it.
The type of income, the taxpayer’s classification (individuals, HUFs, businesses, and so on. ), and the individual’s income will all determine the ITR form that must be filed. If taxpayers select the incorrect form, they must also resubmit their ITR. Let’s take a closer look at the ITR Form for Income Tax Return.

ITR – 1 SAHAJ
It is a form (applicable for residents and ordinarily resident) that a taxpayer has to fill and individuals who are Indian citizens with a total income of up to Rs 50 lakh for the fiscal year 2021–22, and whose total income comprises the following items:
Income from a salary or pension
Income from one house property (except circumstances where a loss from a prior year is carried forward)
Earnings from other sources, such as dividends and interest (excluding gambling, winning lottery and race horse earnings),
Agricultural income up to Rs. 5000
No deductions under section 57 have been claimed by an individual.
There is no overseas income or assets for the individual.

Who can’t use the ITR-1?
Individuals who fall into the following categories are not eligible for ITR-1:
Earnings more than Rs.50 lakh
Agricultural income of more than Rs. 5000
If you have capital gains that are taxable,
If you make money from a business,
Having income from multiple rental properties (more than one house property)
In the event that the individual is a company director,
If you have unlisted equity shares in your portfolio at any point during the fiscal year,
If you are a resident, you may own assets (including financial interests in any company) outside India, as well as signatory authority on any account located outside India.
If you’re a non-resident who happens to be a resident who isn’t ordinarily resident (RNOR),
Possessing overseas assets or receiving foreign income
In the event that the individual is a company director,
If you owe tax on someone else’s income, and that person’s tax has been deducted.

ITR -2
This form is for an individual or a Hindu Undivided Family (HUF) with the following total income for the fiscal year:
Individuals with an income of more than Rs. 50 lakh are eligible.
Income from a pension or a salary.
Income derived from residential real estate.
Additional sources of income (including winnings from the lottery and income from racing horses).
If the person is a company’s director,
Agricultural income greater than Rs. 5,000
Profits from capital gains
If a person is an RNOR (resident not normally resident) and a non-resident,
If any unlisted equity shares were held by the company during the fiscal year.
Foreign earnings and assets.
In addition, if the taxable income is to be combined with the income of another person, such as a spouse or child, this return form can also be used if that income falls into any of the following categories.
Who can’t use this form?
Anyone whose total income for the fiscal year 2021-22 includes money from a business or profession should not use this return form. You may need to use ITR-3 or ITR-4 to declare these forms of income.

ITR 3
Individuals and Hindu Undivided Families that earn money from a sole proprietorship or profession must use the latest ITR3 Form. Anyone who earns money from the following sources can use ITR 3.
Individuals who support themselves through a profession or a business (this applies to both Tax Audit and Non-Audit cases).
The return may include income from a house, salary/pension, capital gains, and earnings.
The company’s revenue exceeds Rs. 2 crores.
During the fiscal year, if any unlisted equity stock investments were made,
You are a company’s individual director.
If the person is a business partner,

ITR-4 or Sugam
Form ITR-4 is used by taxpayers who are opting for the Presumptive Taxation Scheme under section 44AD, section 44ADA and section 44AE and who have income as per ITR-1.
Resident individuals, HUFs, partnership firms (other than LLPs), and partnership firms (other than LLPs) who are Indian residents and whose total income includes:
Earnings from a business under section 44AD or 44AE’s presumptive income scheme
Section 44ADA’s presumptive income scheme applies to professional income.
Salary or pension income up to Rs. 50 lakh (total income)
Not more than Rs. 50 lakh in income from a single house property (excluding the amount of brought forward loss or loss to be carried forward).
Other sources of income with a total income of less than Rs.50 lakh (excluding income from the lottery and race-horses)
Agriculture Income up to Rs. 5000.

Additional Disclosure:
If a taxpayer is filing a return under section 139(1)’s seventh provision, they must provide additional disclosures. Section 139(1)’s seventh clause applies to taxpayers whose income does not exceed the given threshold but they have:
During the financial year, deposited Rs. 1 crore or more in one or more current accounts, or
Incurred expenses of Rs. 2 lakh or more for travel to a foreign country for self or any other person, or
Spent at least Rs. 1 lakh on the power bill.
Taxpayers must disclose the amount of such transactions in all of the aforementioned circumstances.
Who is unable to utilise the ITR 4 Form?
If your annual gross income exceeds Rs 50 lakh,
If you have revenue from more than one residential property.
If you have any carried forward loss or loss to be carried forward under any head of income,
Possessing any kind of foreign asset
If you have signing authority over an account outside of India,
Having a source of income other than India
If you are a company director,
Being a resident not ordinarily resident (RNOR) and non-resident during the financial year
Possessing overseas assets or receiving foreign income
If you are liable for taxation on the income of another person, yet the other person has deducted the tax.

ITR-5
Companies, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), Artificial Juridical Persons (AJPs), Properties of the Deceased, Estates of the Insolvent, Business Trusts, and Investment Funds are all covered by ITR 5.

ITR-6
To file an income tax return, all firms must use this form. To file their income tax return with the Income Tax Department of India, only corporations that do not seek exemption under section 11 must submit ITR Form -6.
Businesses that do not claim an exemption under section 11 must file this form online (income from property kept for charity or religious purposes).

ITR–7
Individuals and businesses must use ITR-7 if they have filed returns under Sections 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E), or 139 (4F). The returns that must be filed under each section are listed below:
Section 139 (4A): Section 139 requires individuals who receive money from a trust or other legal obligations and use the proceeds entirely for religious or charitable purposes to file returns (4A).
Section 139 (4B): If a political party’s total income exceeds the limit amount, it must also file returns under this section.
Section 139 (4C): The following entities must file returns under this section:
The Association for Scientific Research.
Institutions or organizations covered by Section 10 (23A),
Educational institutions include medical institutions, hospitals, colleges, financial institutions, and other educational institutions, to name a few.
News companies
Institutions covered under Section 10 (23B)
Section 139 (4D): This section requires any college, university, or other institution that is not required to furnish a return of income or loss under any other provision of this section.
Section 139 (4E): This section requires business trusts that are not obligated to report their revenue or loss to file their returns.
Section 139 (4F) This section applies to investment funds that are required to file returns under Section 115UB but are not required to report any income or losses.

Important Note:
The following are the tax filing deadlines for FY 2020-21 (AY 2021-22):
Taxpayer classification                                       Last date for Tax Filing
FY 2020-21 
Individual / HUFs/ AOP/ BOI                                            31st December 2021
(Books of accounts are not required to be audited.)
Business (Requiring Audit)                                                15th February 2022
Business (Requiring Transfer Pricing Report)                28th February 2022
 
Audit Report Furnishing due dates:
Submission of Audit Report (Section 44AB)
For AY 2021-22 for taxpayers liable for                            15th January 2022
Audit under the Income Tax Act 1961.
 
Submission of Audit Report for AY 2021-22
For taxpayers having transfer pricing and                          31st January 2022
Specific domestic transactions
Komplytek will make your ITR filing effortless so that you don’t have to worry about missing deadlines.
 
 
 

GST on Restaurant Services provided through E-commerce Operators

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GST on Restaurant Services

The GST Council suggested notifying “Restaurant Service” under section 9(5) of the CGST Act, 2017 during its 45th meeting on September 17, 2021. As a result, the e-commerce operator is responsible for paying the tax on supplies of restaurant services provided through e-commerce operators. Notification No. 17/2021, dated November 18, 2021, has been issued in this regard.

In plain terms, as per section 9(5) of the Central Goods and Services Tax Act 2017, E-commerce operators are obligated to pay GST on certain specified services delivered through their platform as if they were the tax-paying supplier of such services. E-commerce operators are people who own, operate, or manage a digital or electronic facility or platform for the supply of goods, services, or both over a digital or electronic network, comprising digital products.

“The Central Board of Indirect Taxes and Customs has issued a circular No. 167/23/2021 dt. 17/12 2021 regarding the compliance of GST laws in respect of supply of Restaurant service through e-commerce operators”

Please find the link :: Click Here

 The following services are included under section 9(5) of the GST Act 2017:

  • Transporting passengers by radio-taxi, motor cab, maxi cab, motorcycle, omnibus, or other motor vehicle (Notification No. 17/2017-Central Tax (Rate) issued June 28, 2017 and Notification No. 17/2021-Central Tax (Rate) on November 18, 2021.)

‘Radio taxi’ refers to any taxi, including a radio taxi, that is in two-way radio communication with a central control office and can be monitored via GPS or the General Packet Radio Service (GPRS).

The terms’ maxi cab, motor cab, motor bike, motor vehicle, and omnibus’ have the same definitions as in clauses (22), (25), (27), (28) and (29) of Section 2 of the Motor Vehicle Act, 1988. (59 of 1988).

  • Accommodation in hotels, inns, guest houses, clubs, camping sites, or other commercial areas intended for residential or accommodation purposes, except where the person supplying such service through an e- commerce operator is liable for registration under section 22(1) of the said Central Goods and Services Tax Act 2017. (Central Tax (Rate) Notification No. 17/2017, issued June 28, 2017)
  • Housekeeping services, such as plumbing and carpentry, are exempt from registration under section 22 of the said Central Goods and Services Tax Act, unless the person providing such service through an electronic commerce operator is required to register under sub-section (1) of section 22 of the said Central Goods and Services Tax Act. (Central Tax (Rate) Notification No. 23/2017, issued August 22, 2017)

Restaurant Service:

With Notification No. 17/2021-Central Tax (Rate) dated November 18, 2021, the Central Government has now placed restaurant services within the scope of section 9(5) of the Central Goods and Services Tax Act 2017.

  • Other than services provided by restaurants, eating joints, and other establishments established in specific locations, offering restaurant services.

‘Specified premises’ are those that provide hotel accommodation services and have a declared rate of more than Rs. 7,500 per unit per day or equivalent.

‘Restaurant service’ refers to the provision of goods, such as food or other article for human consumption or any drink, by a restaurant, eating joint, mess, or food court, whether for consumption on or off the premises where such food or any other item for human consumption or drink is offered. (Central Tax (Rate) Notification No. 20/2019, issued September 30, 2019)

From January 1, 2022, the notification will take effect.

According to the aforementioned notice, food tech businesses like as Zomato, Swiggy, Uber Eats, and others will be obliged to pay GST on restaurant service provided through their platforms as if they were the supplier of such services. Restaurants are exempt from charging GST in these situations.

Exception: The aforementioned rule does not apply to restaurant services supplied by restaurants, dining joints, and other establishments located on the premises of a hotel that has a declared tariff of Rs. 7,500 per unit per day or equivalent for any unit of lodging.

GST rate: The GST rate for restaurant services is 5% with no input tax credit.

Implications

For food-tech firms,

  • Food tech companies would also have to pay GST on the food they sell on their platform.
  • Increased compliance costs.
  • TCS is not required to be collected on funds remitted to restaurants unless such funds are subject to GST.

Restaurants, eating establishments, such as mess and cafeterias

Restaurants will not be accountable for GST on foods purchased through e-commerce platforms. But they will be liable for GST on foods served in restaurants, takeaways, and outdoor catering.

Restaurants would be required to register for GST only if their revenue exceeds the minimal level of Rs. 20/10 lakhs.

If restaurants are part of a hotel providing room services with disclosed tariffs exceeding Rs. 7,500 per unit per day, restaurants will be liable for GST, not food tech businesses.

 For cloud kitchens

This will also provide complete relief to cloud kitchens that rely solely on e-commerce platforms to operate. Even if their turnover exceeds the minimal threshold level of Rs. 20/10 lakhs, cloud kitchens will not be needed to register for GST.

Financial Statement – Is it a viable tool for assessing a firm’s performance?

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Financial statement

A financial statement is a written record that details a company’s operations and financial performance. The financial report, cash flow, statement of financial position, and balance sheets are all included in the financial statements. Financial Analysis is a method for assessing and evaluating a company’s financial status to make better financial decisions. One of the major purposes of financial analysis is to identify changes in economic statistics, that can be used to evaluate an organization’s performance and make a connection that can be used to reach a logical outcome about the firm’s earnings.

The financial statement and the balance sheet are essential reports in analysing a company’s overall financial condition, as the financial statements reflect the business’s performance and the balance sheet indicates its total value. These statements are the result of the accounting information system. They provide valuable insights that help managers and employees, as well as potential investors and their businesses. The financial statement should, in all likelihood, give valuable and accurate data. Any firm’s overall goal is to constantly grow and survive for the long run.

In today’s increasingly competitive business world, the survival of businesses, large or small, local or global is dependent on management’s strategic decisions. To make the best decision at the right time, every manager requires information.

Financial statements assist three crucial financial elements:

1.The financial statement displays crucial information about the firm’s present condition and previous financial records to the investors and creditors. This aids them in making important decisions. Although it rarely gives sufficient information.

2.Financial statements make it easy for shareholders and creditors to determine goals and place constraints on the company’s managers. Past data is important for planning, but it should be treated as a reference instead of a preliminary step.

3.Because of the business’s intricacies and size, management requires up-to-date, precise, and complete information about the company’s financial situation. Providing accurate data to management allows them to develop proper company procedures and make sound judgments. These financial statements evaluate management’s performance, and their success will help management justify their job to all stakeholders. Managers can assess the general consistency of project-by-project plans and gauge the firm’s total finance needs.

Is it a viable tool for assessing a company’s performance?

Though financial statements represent a company’s financial status at the end of a financial period, however, the data supplied in financial statements is not a conclusion in itself as they do not provide precise information about the company’s level of quality or operational performance at the end of the period. As a result, no significant conclusions can be drawn solely based on them.

Why choose us?

Outsourcing has become the most prevalent business tool of the 21st century. Komplytek is a one-of-a-kind outsourcing services company that offers effective solutions to companies all around the world. Our major purpose is to determine the accuracy of the company’s financial records, as this is critical to its financial health.

Outsourcing the finance and accounting function of the organization has become a prevalent prodigy. It allows business owners to concentrate on other important and core business tasks. We provide financial and administrative flexibility by assisting businesses to manage the financial activities of the firm and simultaneously meeting the taxing demands of their clients.

Komplytek believes outsourcing expert accounting and finance services can magnify the efficiency and output of your business. With the rise in the complications of businesses, entities across the globe are seeking an amplified control structure for financial reporting, precise reconciliation solutions, strategic planning, assets records, cash flow administration, faster turnaround time, and other services.

Our main focus is to understand your business model, work tactic, and financial goals before the beginning of the project to meet your requirements effortlessly. The main emphasis is taking pre-emptive measures at every phase so that you get more results within a short period. With a team of professionals, we can help you in attaining brilliance in your finance and accounting operations.