Maitreya Patni - A. Chandak & Co.

Thursday, 30 March 2017 17:59

QuickBooks Services

Business runs better with QuickBooks, the #1 accounting solution for small business. You can quickly do your invoicing, bookkeeping, and billing because QuickBooks gives you the things you need most, all in one place. Easily track sales and expenses, accept payments, scan receipts, and be ready for tax time. Use the new QuickBooks on all your devices, wherever you go throughout your day. It syncs data automatically across your computer, iPad, iPhone, or Android. And of course, all your data is protected. Its comprehensive tool set makes it easy to manage your company's money matters and get a picture of its overall financial standing. The ability to generate almost any type of report is a real time-saver (and probably a life-saver), especially come tax time. Overall, this is a solid product and anyone that's considering starting a small business should include QuickBooks Online as part of their business plan. A.Chandak & Co. provides following QuickBooks Services :-

Statutory Audit

Statutory audits are conducted in accordance with the Companies Act, 2013 and Standard Auditing Practices issued by the Institute of Chartered Accountants of India. We act as the statutory auditors of Public Limited Companies, Private Limited Companies

Limited Liability Partnership (LLP), Partnership Firms, Charitable Trusts & Institutions, Societies, Clubs, Educational Institutions etc. Major objective of these audits are:

To certify financial statements.
Report under Companies (Auditor’s Report) Order (“CARO”)
Continuous dialogue with the management, concerning any material weaknesses in the internal control system.

Tax audits

An Assessee is liable to get his Tax Audit done by a Chartered Accountant mandatorily, if in the previous year.

The Person is carrying on business and his Total Sales/Turnover exceeds Rs. 1 Crore or
The Person is carrying on Profession, and his Gross Receipts exceed Rs. 25 Lakhs or
The Person is carrying on business or profession and is covered under the provisions of section 44AD, 44AE, 44AF, 44BB or 44BBB and claims that his income from the said business is lower than the deemed profits and gains computed under the relevant section

The Due Date of filing of Income Tax Return of an Assessee liable to get his Tax Audit done under Section 44AB is 30th September. In case of Corporate Assessee’s who are required to furnish a report under Section 92E for International transactions – the due date is 30th November.

In case an Assessee is liable to get his Accounts audited by an Accountant under any other Law for the same accounting period, the assessee is not mandatorily required to get his audit done again and is only required to submit a report in the form mentioned below.

However, if the Accounting Year is different from the Accounting Year for which the Audit was done under any other Act, the Tax Audit would be required to be conducted again as per the Income Tax Act. efiling of Tax Audit report is mandatory from the assessment year 2013-14 onwards.

As per Rule 6G, tax audit report is to be furnished in Form 3CA & Form 3CB and the particulars required to be furnished along with these tax reports should be in Form 3CD.

Form 3CA & Form 3CD- These Forms are used in case where the Accounts of the business or profession of a person have already been audited under any other Law.
Form 3CB & Form 3CD– These Forms are used in case where the Accounts of the business or profession have not been audited earlier.

Transfer Pricing Audit

In Transfer Pricing Audit, a Chartered Accountant is required to comment on pricing of transactions between two or more associated enterprises vis- vis also commenting on Arm’s Length Price by applying any of the following most appropriate method prescribed under Transfer Pricing regulation:

Comparable Uncontrolled Price Method
Resale Price Method
Cost plus Method
Profit Split Method
Transactional Net Margin Method

The taxpayer may choose any method which is most appropriate based on the facts and circumstances in his case. The Applicability of Transfer Pricing can be better under stood from following chart :

Particulars

International Transfer Pricing

Domestic Transfer Pricing

Applicability

I. On a transaction (sale, purchase, lease) between two or more associated enterprises in which either or both of them are non- residents.

I. On any expenditure in respect of which payment is made or to be made u/s 40A(2)(b).

II. On any transaction mentioned in section 80A.

II. On any other transaction having a bearing on profits, income, losses including any agreement / arrangement entered into for allocation or apportionment of any cost or expense.

III. On any transfer of goods or services u/s 80-IA(10).

IV. On any business transacted between the assessee and other person u/s 80-IA(8) and 80-IA(10).

V. On any transaction referred to in any other section under chapter VI-A or section 10AA, to which provisions of sec 80-IA(8) and 80IA(10) are applicable.

Relevant Form to be filed

Form No. 3CEB u/s 92E

Relevant Due Date For Compliance

30th November

Due Date For Tax Audit

30th November

Due Date For Return

30th November

Monetary Limit

No Monetary Limits

Companies having related party transactions more than 5 Crore

A.Chandak & Co. assist clients in :

Determining the Arm Length Pricing.
Preparation of Transfer Pricing Report.
Conducting Transfer Pricing Audit.
Representation before taxing authorities.

Management, Internal Audit and Concurrent Audits

Auditing services includes reviewing and restructuring operational systems. Our emphasis is on ensuring strong internal control systems to minimize the risk of accidental or deliberate errors, omissions, frauds safeguarding of assets, adequate division of authority over key control areas and compliance with internal operating policies and guidelines are other focus areas of our procedures. Our objective is to ensure that resources of the organization are optimized to deliver maximum possible value. We focus on streamlining processes, minimizing waste and objective measurement of management and staff performance. Our objective is to facilitate the clients in:

Understanding the deficiencies in the existing system of accounting.
Fund management.
Stores and purchase management.
Setting up & improving systems.
Compliance with management controls.
System and process improvements.
Financial impropriety and fraud audits.
Due diligence for acquisitions and investments.
Operations and Efficiency Audit Services.

Due Diligence Review

We assist clients in conducting financial, legal and accounting reviews in case of mergers, acquisitions and investments. A sound understanding of local laws, regulations and accounting practices enables us to vet all critical issues in detail.

Stock audits on behalf of banks/companies

Our emphasis is on ensuring strong control systems to minimize the risk of accidental or deliberate errors and omissions. Our objective is to ensure that resources of the organization are optimized to deliver maximum possible value. Stock audits include:

Stock/inventory verification
Age-wise analysis
Variance analysis by comparing actual with book records
Setting-up stores manuals
Improving systems

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Thursday, 30 March 2017 15:57

Foreign Direct Investment

India's foreign trade policies have been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories - Investment under automatic route and investment through prior approval of Government.

Procedure under automatic route
FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure under Government approval
FDI in activities not covered under the automatic route, requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.

FDI Allowances in various sectors

Agriculture – 100%.
Plantation Sector – 100%.
Mining of metal and non-metal ores – 100%.
Mining – Coal & Lignite – 100%.
Food Product Retail Trading – 100%.
Broadcasting Carriage Services (Teleports, DTH, Cable Networks, Mobile TV, HITS) – 100%.
Broadcasting Content Service - Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels – 100%.
Airports – Greenfield – 100%.
Airports – Brownfield – 100%.
Air Transport Service – Non-Scheduled – 100%.
Air Transport Service – Helicopter Services/ Seaplane Services – 100%.
Ground Handling Services – 100%.
Maintenance and Repair organizations; flying training institutes; and technical training institutions – 100%.
Construction Development – 100%.
Industrial Parks – new and existing – 100%.
Trading – Wholesale – 100%.
Trading – B2B E-commerce – 100%.
Duty Free Shops – 100%.
Railway Infrastructure – 100%.
Asset Reconstruction Companies – 100%.
Credit Information Companies – 100%.
White Label ATM Operations – 100%.
Non-Banking Finance Companies – 100%.
Pharma – Greenfield – 100%.
Petroleum & Natural Gas - Exploration activities of oil and natural gas fields – 100%.
Petroleum refining by PSUs – 49%.
Infrastructure Company in the Securities Market – 49%.
Commodity Exchanges – 49%.
Insurance – 49%.
Pension – 49%.
Power Exchanges – 49%.

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Thursday, 30 March 2017 15:57

JOINT VENTURE WITH AN INDIAN PARTNER

Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor:

Established contacts of the Indian partners which help smoothen the process of setting up of operations
Established distribution/ marketing set up of the Indian partner
Available financial resource of the Indian partners

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Thursday, 30 March 2017 15:56

Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office.

Activities Permitted:

As per the guidelines laid down by the RBI, the Branch Office in India is allowed to carry on only the following activities:

Export / Import of goods
Rendering professional or consultancy services
Carrying out research work, in which the parent company is engaged
Promoting technical or financial collaboration between Indian companies and parent or overseas group companies
Representing the parent company in India and acting as buying / selling agent in India
Rendering services in Information Technology and development of software in India
Rendering technical support to the products supplied by parent / group companies

Approval / Incorporation
Foreign companies intending to open a Branch Office in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India.

In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

Branch Office is considered a part of the foreign company and is not treated as a separate legal entity.
The office can undertake trading activities, but not manufacturing.
It is subject to taxation in India at 42.23% on income accrued in India.
If there is a double taxation agreement with the country in which the foreign company is incorporated, the tax paid in India can be set off against the total tax payable by the parent company abroad.
Branch offices may repatriate profits to their Head Office without obtaining prior approval.
The Branch Office would not expand its activities or undertake any new trading, commercial or industrial activity other than that is expressly approved by the RBI.
The entire expenses of the Branch Office in India will be met either out of the funds received from abroad through normal banking channels or through income generated by it in India.
The Branch Office will not accept any deposits in India.

Repatriation of Profits

A Branch Office can remit the profits (net of any withholding tax) generated out of its operations in India on production of the prescribed documents, and on establishing that it has earned a net profit by undertaking the permitted activities. The Branch Office need not retain any profits as reserves in India.

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Thursday, 30 March 2017 15:55

LIAISON OFFICE

A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate.

A liaison Office is not permitted to undertake any commercial / trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels.

Activities Permitted:

Representing in India the parent Company / group Companies
Promoting export/ import from/ to India
Promoting technical / financial collaborations between the parent / group companies and companies in India
Acting as a communication channel between the parent company and Indian companies

Approval / Incorporation

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof. In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Typical Points about Branch Office

Any foreign company intending to open a liaison Office in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.
In addition to above, the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Suitability of a Liaison Office

The liaison office generally acts as a communication channel between the parent company overseas and its present or prospective customers in India. The liaison office can also be set up to establish business contacts or gather market intelligence to promote the products or services of the overseas parent company. The liaison Office cannot undertake any business activity in India nor earn any income in India. The liaison Office has to meet its entire expenses from funds received from the parent company through normal banking channels. At the time of closure of the liaison Office, the RBI grants permission to repatriate the balance in the Indian bank account to the parent company. Since the liaison Office is not permitted to earn any income, it should not constitute a taxable entity in India. However, the liaison Office would be required to withhold tax from certain payments and hence to comply with the requisite tax withholding requirements under the domestic tax law.

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Thursday, 30 March 2017 15:54

100% OWNED SUBSIDIARY

Form a Company and the parent Company will hold 100% of Shares in the Company.
- The Company can take up any business in India.
- NO RBI permission.
- Will be treated as Domestic Company
Tax Rate Slab will be 30%

Approval / Incorporation

The Company is required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC).

Can be independently promoted by Parent Company
Can be promoted by any two people in India and then the holding of this person can be purchased by the Parent Company. (If this is the case, intimation about the transfer of share is required to be informed to Reserve Bank of India).

Typical Points about 100% Subsidiary

The profit earned in India can only be taken away by parent Company in the form of dividend after payment of dividend tax.
No easy exit.
Transfer pricing issues if purchases made from sister concern.

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Thursday, 30 March 2017 15:53

Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

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Thursday, 30 March 2017 10:29

Our Alumni

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Tuesday, 28 March 2017 12:09

Transformation To GST

The Indian indirect taxation system is due for a seminal tax reform with the introduction of a unified Goods and Services Tax (GST) as against the prevailing plethora of taxes (value-added tax (VAT), central sales tax (CST), service tax, customs duty, excise duty, entry tax, etc.).

The new GST regime will open up an array of opportunities for businesses across India as well as those planning to enter the Indian market. On the other hand, GST may also pose various challenges with respect to business planning, budgeting and investment, as it will change many earlier assumptions regarding business and the market and as a whole. The challenge at hand for the business community is to adapt to the transitional tax reforms by understanding the nuances of the new GST regime.

In this evolving indirect tax scenario, we at A.Chandak & Co. plan to assist our clients in bridging the gap over to GST by providing specialised services to mitigate any GST-related tax risk. Our vide range of Services on GST are:-

GST Tax Risk Management Service

GST Tax Risk Management Service is a comprehensive review program designed to assist GST-registered businesses to ascertain their level of GST risks with regards to the overall control of the business operations.

This review would cover the controls surrounding the preparation of the GST returns, output tax and input tax considerations faced by your company. If need be, our review program will assess your current accounting system’s functionalities which may potentially produce inaccurate information or errors in the process of preparing the GST returns. With the results of our assessment, we aim to mitigate the risks faced by your company from getting penalized by the CBEC/GST Authorities due to potential errors in the GST submission and reporting.

GST Retainership Package

As the implementation of GST is at it’s bring in our country, your business may face many technical and practical issue in complying with the GST requirements. Therefore, it is important for you to understand clearly the GST treatments and implications on your business to avoid any penalties that may be imposed on your company. Our retainer program is a subscription-based retainer program that allows you to post your GST-related questions for the attention of our team of GST experts. As a subscriber to this program, you will also be notified of all the latest updates or changes in the GST laws, regulations, orders and guides that are published by the CBEC or the GST Council.

Technical Opinion on GST Implications

There will be times when your business is faced with uncertainties in identifying the appropriate GST treatments or implications for a particular transaction or arrangement. Such ambiguities may be caused by the complexity of the transaction or it may represent an area that has yet to be extensively covered by the relevant GST laws, regulations, orders or guides published by the CBEC or GST Council. In such cases, we would assist your business in studying the arrangement in detail and providing you with our expert opinion on the issue faced by your business. If required, we will assist your business to make a representation or seek an advance ruling on the matter.

GST Appeal & Dispute Resolutions

If you feel that your business has been wrongly penalised or affected by an adverse decision by the Assessing Officer of GST , we will be able to assist your business in appealing the penalty or against the adverse decision. As authorised representative, we will also be able to assist your business as follows:-

Apply for advance rulings;
Appeal your GST dispute at the GST Appeal Tribunal.

Goods And Services Tax (GST) Registration

Filing of Registration Application
Receipt of GST Identification Number (GSTIN)

Accounting & GST Filing (Quarterly/ Monthly)

Online GST Accounting
GSTR Filing for 3 months for ONE GSTIN
Includes returns for July-Aug-Sep
Filing for B2B and B2C invoices

GST Filing - GSTR-4 (Composition Supplier) (Quarterly)

GST Returns (GSTR-4
Filing for B2B and B2C invoices
Reconciliation for all transactions
GST related Book-Keeping and Accounting

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Tuesday, 28 March 2017 12:07

Determining the Arm Length Pricing, Preparation of Transfer Pricing Report & Conducting Transfer Pricing Audit

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