Why You Need a Chartered Accountant for Business

A chartered accountant is a highly knowledgeable and skilled profession who shows his expertise in the field of finance including tax, audit, cost accountancy, share management etc. These professionals either consult public in their own units, work in private organisations or appointed by government departments. Almost every organisation and business units appoints chartered accountants to cater to all financial needs.

The various charted account services needed for a business are:

Maintaining Accounts

A chartered accountant keeps and maintains various accounts of the company, update it and prepare financial statements. The preservation of accounts by CA can range from book keeping to intricate financial analysis.

Audit

One of the vital chartered account services is auditing. It involves checking and validating the authenticity of the accounting figures, principles and methodologies of the company.

Taxation

The CA of the company is responsible for assessing taxes, preparing tax returns, consulting on tax control measures and auditing cases with large revenue. A CA also renders advice on different investment schemes to companies and individuals for saving on taxes.

Cost Accountancy

All CAs have the competency to determine the cost of production and services and suggest cost control methods. CAs also suggest costing information of a company and suitable selling prices of different products and services.

Share Valuation

During mergers and take-overs, CAs underwrites the valuation of shares of private and public companies.

Investigation

Finding out the financial position of a company in relation to issuance of new share capital, newly acquired business units, sale and sponsorship of a business and reconstruction of a company is another important chartered account service.

Executorship

A CA may act as an executor or trustee under a will in order to run the functioning of an estate or house. In this kind of chartered account service, the CA works in close association with lawyers and solicitors and assist them in accounting matters.

Secretarial Work

A CA may also play the role of a company secretary in MNCs and other large set-ups. There the CA along with his regular finance jobs also works with core management team and manages the general operations of the company.

Policy Maker

A CA often acts as a policy maker of a company. He is also responsible for formulation and successful execution of the company along with daily checks and performance assessment.

Directorship

The practice of appointing a CA as one of the company directors is in practice and well-known. The benefit of having a CA in the Board of Directors are many including well-planned financial management and guidance on principles of organisation and ways of effective delegation of work.

Other Services

Along with these, there are other chartered account services like:

• Secretarial and registration work of the company
• Developing company MIS
• Designing company budget
• Developing methods of capital utilization

Guides for Taxation Service in India

Taxation service is the most important and complex component of any financial planning. Tax consultants have special expertise in rendering taxation services which include suggesting incometax saving tips, consultancy on tax laws and planning for future taxation. Companies that render taxation services to people and firms work with a highly competent and knowledgeable team of professionals who provide multi-faceted facilities related to tax. The areas where these companies actually help are country and inter country tax advisory, tax accounting, tax performance advisory, tax policies and controversies, transaction taxes, VAT, GTS and other sales taxes. The details of the taxation services in India are as follows:

Direct Tax Consultancy

The tax experts act as consultants and prepare tax returns for individuals, companies and NRIs. They also play the role of executors, assessing officers and trustees under the will. Tax consultants help the clients to obtain PAN, tax deduction account number, TDS services, filing income tax returns and e-TDS returns and providing guidelines on incometax saving tips.

International Tax Consultancy

Tax experts assist client in international taxation affairs getting necessary approvals and sign-offs on foreign investments from controlling bodies like Reserve Bank of India, Foreign Exchange Promotion Board and Secretariat of Industrial Assurances (SIA) together with Liaison with Directorate General of Foreign Trade (DGFT) and Ministry of Industries. The services also include:

• Suggesting the process of withholding tax on foreign remittances as per tax laws
• Guiding the process of issuing Foreign Remittance Certificates
• Providing technical knowhow about various international tax legislation policies and acts
• Helping to get certificates from the International taxation department
• Assisting in documentation and remittance support
• Guiding expats in understanding tax requirements in global business

Transfer Pricing

Transfer pricing resolutions can play an important role in addressing the issues of limited cash flow and reduced credit facilities of companies. Tax consultants render service in helping firms in the transfer pricing policies in India along with reporting, documentation and certification.

Tax Consultancy for Corporate Clients

Rendering tax consultancy services for corporate clients is another vital taxation services in India. Such services include:

• Communicating to various tax notices and providing essential assistance on regular tax matters.
• Managing tax records, documents and reports in both Soft and Hard copies
• Maintaining tax compliance that includes advance Income tax and Fringe Benefit Tax and filing returns on time and assembling of Corporate tax returns such as IT and Wealth Tax
• Compilation of tax reports for scrutiny and audit
• Support to get online tax credits
• Tax reporting to parent companies on monthly, quarterly and annual basis.
• Helping companies to manage report indirect tax benefits such as VAT
• Guide in various processes of tax computations and complex calculations
• Supervises as an advisory on various tax issues like capital gains, profit and loss

Factors to Consider before Setting-up a Business

Setting-up and starting your own business unit is thrilling and challenging at the same time. Market survey says that every 3 out of 4 business close within 3 years due to non-compliance of policies and strategies.

Settingup of business can face economic, political and social constraints, manpower issues, concerns about raw material supply and problems of market demand, strength of competition and condition of the economy.

There are few dynamics that should be considered before starting up a business in order to assure long term success and profitability.

Experience

One of the key factors that needs to be taken into account before setting up a business is the experience and exposure of the entrepreneur. If someone wants to take-up a new venture, he/she should work in that domain or industry for a couple of hours in order to gain adequate knowledge and expertise.

Market Scenario

For setting up a business of a product or service it is extremely important to study the market, assess the demand for the product or service and analyse the competition and its strength and weaknesses. It is also advisable to conduct appropriate market surveys and interact with potential customers.

Economy

One of the prime factors to consider before setting up a new business is the present economic condition. If the economy is down and descending it is better to wait and watch the situation improve or start in a small scale. But there are certain business set-ups that are recession proof and do not depend on the condition of the economy. They are healthcare, education, energy, fast food, candies and skilled services.

Finance

The most important among all the factors to consider before settingup a business is finance or funding for the set-up. Adequate and appropriate funding from the right source is the foundation of every new venture.

Business Plan

A well-formatted and devised business plan is needed prior to take-off. The plan helps in structuring of ideas and sharing the plan with others may help to gain financial assistance, business partners and potential investors.

Manpower

Every new business requires immense skilled man power who gel with the business environment and enhances productivity in the set up.

Time

Every entrepreneur should remember that time is very vital for their new business set-up. Starting from small scale home business to large scale retail chains, time is needed for client handling, paperwork, operations and admins, complaint resolution and maintaianence of accounts and records.

Strain

Setting up a business is inspiring, thrilling and tiring at the same time. A person can gain stress and anxiety due to excessive physical and mental work pressure, sudden changes, and client escalations, scarcity of fund, orders and demand.

TDS,Tax and Income Tax Return

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Every year it is mandatory to file income tax returns if you are a permanent resident of India. There are several guidelines on tax matters. People who are running their own business as well as salaried people have to pay tax if they meet certain criteria set by government of India. Every year government will set a baseline for tax payment. It will be different for males, females and senior citizens. One should check in which division they will fall. Check whether you are under the income tax limit? If not, then should check in which division you have to submit the tax form. Many people wont give much importance to filing tax returns on the due date. Result of this is paying extra money as penalty. As all resources are available near you, why do you want to file tax returns later? In this matter, you will get all types of assistance from Simplifiedlaws.com. This is an online portal that is helping individuals on tax filings and various other tax issues. It wont take much time to clarify your tax concerns and do necessary activities.  If you are not able to file tax returns by your own, then approach this company for assistance. 

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Those who are earning rupees five lakhs or above on an annual basis  should pay tax. You have two options to file return of income. Either you can go for electronic filing or physical filing. Most of the people are interested in using the electronic filing option as it takes less time to do all tax filing processes. All they have to do is get their tax return in a valid XML format. This can be done with the assistance of an online tax preparation site like Simplifiedlaws.com, or the income tax site. After that you have to log on to the income tax site and click the Income tax return form. There are various types of ITR forms. One should check which form is apt for their purpose. A tax consultant is able to provide guidance on this regard. You have to log in to the income tax site with a valid ID and password. Your pan card number will be your user ID. After log in to the website you can check your tax credit statement. This is form 26AS where details related to the taxes deducted by your employer can be checked. The TDS provided in the Form 16 should tally with the statements in the tax credit statement. If this wont tally, and you wont try to solve it. Then will get a query on this from the tax department. Next step is to upload the XML file. After uploading the file you will get an acknowledgment.  If you have uploaded the file with a digital signature then can say you have finished income return filing successfully.

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There is tax reduction at source or TDS on certain payments. The tds exemption is meant for reducing the burden on business by individuals, firms, companies and other corporate firms. One has to check this before filing tax returns. Mostly tax exemptions are given on Demat account maintenance charges, warehousing services for commodities, cash management services, underwriting services by banks etc. It is better to check whether you get tds on purchase of property from nri. 

Nowadays it wont take much time to file income returns. You can ask the assistance of private portals for this. Many sites are able to offer income return filing services at affordable rate. A private portal will hire a chartered accountant for doing the service. He will help you in preparing and filing return without any difficulty.

Taxes a Top Problem for Business

All salaried employees, self-employed employees and companies should file tax returns at the end of the financial year. But there are many clauses and conditions that companies have to satisfy while paying tax. Many companies are facing difficulties with tax filings every time. Those who are doing business should understand the tax laws related with their business so as file it in a correct way. Otherwise, it will be a big headache for them. Ever year that government is amending the tax return clauses and conditions. Those who are not able to keep pace with the ongoing tax amendments have to face tax issues. 

Many who are doing business in the country have the opinion that they are facing lots of challenges in the tax subject. The government of India has given many guidelines on this subject, but still there are many topics that are waiting for getting clarification.  There are different rules and regulations for private limited companies and public limited companies. There are circumstances where companies are not able to give an explanation for a deduction. One should know all the rules and regulations for setting up company and running a company in the country. Otherwise, there will arise many queries and answering all these will be very difficult. To start a business in the country one have to do or undergo many types of procedures. A person who is through with it only can carry out all the procedures successfully. Otherwise, they have to approach a tax consultant or business consultant for assistance. Most of the people find it challenging to meet all the rules and guidelines for starting a business. It is said that normally it will take nearly 27 days to complete all the procedures for staring a new business. After getting permission for beginning a business next is to deal with construction permit. You have to met many departments to get sanction for the building. You should meet electric department, environmental department, water department, sewage department, traffic department and many others for getting sanctions on various areas. Other than getting sanction, you have to pay fees for their assistance. All these will take so many days. Dealing the construction permit is not always easy for many business people. After finishing the construction of the building you should register the property. This requires many types of legal work and registration charges. A business operating in India has to pay nearly 33 different varieties of taxes. Those business people who are not aware of the tax payments related with their business have to face many issues later. Some tax varieties that a business house has to deal with are fuel tax, property tax, dividend tax, central sales tax, vehicle tax, excise duty etc. 

An NRI who is planning to start a business in the country has to know about the culture, company laws and tax laws prevailing here before starting a business. AN NRI start his business here as a branch office, liaison office, project office, society, trust, a profit company or as a non profit company. There are separate laws related with each. One can set up a profit company here provided the business objectives are per Indian Foreign Investment Regulations. The company require directors and shareholders as stated in the FDI regulations. In certain occasions the directors and shareholders shouldn’t be of Indian origin. One has to check on this to get more information. The NRI taxation in India is followed under various clauses and legal regulations. Taxable services are divided under various topics. Tax implications in India have to be checked with a tax specialist.