Wednesday, 31 May 2017

Doing & Promoting Business in Dhinchak Pooja's Style!

In my life I laughed twice like a crazy person. Once many years ago when I saw the movie “Jaane Bhi Do Yaaro” First Time and Second was yesterday, When I saw the album of some dhinchak Pooja accidently forwarded by FB Automated Recommendation Program. Most of the times I am forwarded only Tax, Economy, Law, Government & God related things, but sometimes stupid things also happen. It was her X Factor Audition Video. I could sense it was fake, but editing was great.
When you will listen to her, it may feel your ears bleeding, sudden headache or your heart to be sinking. She is the one, you can hate, but can’t ignore. And here one question arose in my mind, “How a Singer with such awful voice can be so successful?” Large Number of Followers, She has large audience, Just on youtube about 67K Subscribers.
It recalled me story of Bharti Singh, who is performing in many fields and earning well name, fame & money as well. With this my approach towards this little girl changed & now for me she is not a singer at all, she is just an entertainer. Whatsoever she does just to entertain people.
Her Story may be inspiring for new startups, marketing  professionals & strategy makers. Here are the Lessons:
  1. Have Patience. Be Persistent: Her Journey began in July’2016. With her album “Swag Wali Topi”. Got pathetic response. Till now only 2.10 Million Views. But she did not accept defeat and in Jan’17 released her second album “Daaru”. OMG, it was worse than her first album. Primary school kids would sing better. But now she had some attention of new generation, got 3.8 Million Views and even after such a criticism, she released her latest album that released on 14th May’2017 “Selfie Maine Leli Aaj” and got more than 1 Crore Views in just 15 Days. Now She is well known name specially among school or college Kids. So, don’t get disappointed, if you do not succeed at first, Keep improving and be Persistent. Do Rest, but Don’t Quit.
2. Be Shameless & Be Confident: 21 years ago, I was auditing books of a big travel company. Accountant there was M. Com. One day during lunch; He introduced me to his friend, both came together from Bihar. He was also M. Com, but instead of joining some company, he started his small business to sell clothes in weekly bazar. He told me, what his friend earned, he earned four times, He advised his accountant friend also to join his business, but he felt ashamed, what world would say, such an educated person, selling clothes in weekly bazar ??
So, Be Shameless, don’t worry, what world would think about you, simple principle of Yin & Yang, You will be appreciated by some and criticized by others for the same decision. So Do, what you think is appropriate. Have Self Confidence because if you are not confident about your success, how you can expect others to have faith on your abilities. If Pooja would have got disheartened with the response of her first album, she never dared to release second & third album.
3. Right use of Social Media: It is old saying, It is better to have defame rather than be unknown, at least world will know you. Pooja hardly got 4 or 5 stars out of five, in most of the reviews. But important is she is being reviewed. I have observed many small startups got good funding & business those succeed to use social media with right contents & marketing. Once I asked one of my friends, who was manager social marketing in one of company, How was your job? In sad voice, he said, “I am doing everything including admin work, but not the job, I was appointed for.” Many companies failed to use social media for benefit of their business. They must understand using social media in right manner, they can really connect with community that might be interested in their products or/& services. The way Pooja used Social Media and use negative, aggressive & even abusive trolls in her favour is remarkable. (The Same Strategy Mr. Kejriwal used in 2014-15). Now, If you search at youtube, you will find many celebrities from Sunny Deol to Salman & Sharukh Khan, Lata Mangeshkar, Paresh rawal, Bahubali Team  and  Even PM Modi reacting on her videos, no matter all are fake and made by excellent editors using  different clips of these known personalities, but directly or indirectly they have created a large space for this Dhinchak Girl. Reminds Me, You start something with your full heart and whole universe be there to make your dream come true.
4. A Perfect Team & Perfect Process: I have noticed many startups, in the beginning invest huge amount in technology, and hire professionals they even can’t afford for long. Start in house processes that could be outsourced, could not use the full potential of their team/s and soon that organisation becomes the group of tired, frustrated & depressed professionals.
Here should learn from Pooja, Simple music, No artistic lyrics, no animations, no extra backgrounds, a simple video that anyone can shoot, no special effects on voice.
In 1993, I have learned both Tally & Tata’s EX Accounting Softwares. And I told our instructor, Tally would go long, He asked, How you could say with such confidence, My reply was, In time I could pass 10 Entries in Tally, In EX I could pass only 2 Entries. It required high end machines. Many companies opt for HRMS, to automate entire HR Processes even with 40-50 Employees. Implement SAP, with turnover of INR 50 Million, Whereas Tally or Busy is good enough for them AND then to reduce cost start the process of reducing team sizes. They fail to understand where to invest and where to save, what to do at their own or what to outsource, when to buy or when to take things on lease, they make capital budgets for the sake of budgeting.  Here Pooja is great example that How with limited resources you can execute your project excellently. Note, Every Rupee you save is the Rupee you earn.
There can be many more lessons, but finally, it is ATTITUDE. Never dying Attitude. You can turn your failure into grand success. Pooja also reminded me story of a boy who started his business with a dead mouse and succeed to establish a big empire of his own, that we read during school days.
Hope, People who want to succeed in life, will adopt these lessons and meet with success in their life very soon.
With praying to Maa Saraswati to bless this Dhinchak Girl Pooja with some melodious voice, so that listener of her songs, do not feel tortured, and She spread happiness & joy with her songs, I finish this Article. Thanks.                                                                                                                                            
                                                                  
hare

Tuesday, 30 May 2017

Clarification by CBEC thru its GST Help Handle on Twitter

Clarification by CBEC thru its GST Help Handle on Twitter against queries raised by some People:

►ITC is available only if engaged in taxable activities. Since goods are exempt, ITC cannot be availed nor can it be carried forward.

►One Invoice cannot contain both Exempted and Taxable Supplies. Have to issue Separate Invoices. Tax Invoice/Bill of Supply for Taxable Items and Bill of Supply for Exempted Items.

►Items on Cess is applicable. It would be additive and not multiplicative e.g. Pan Masala (chapter 21) falls in 28% Category. It also attracts 60% cess . The total Tax would be 88% (100*28%+100*60%) and not 104.8% (100*28%+128*60%).

►Refund/Rebate would not be processed automatically. For Refund / Rebate, One has to file application and after processing of that eligible amount would be directly credited to bank account.

►Services by employee to employer shall be treated neither as supply of goods nor of services. On Payment of Salary to Employees working in Branches, registered as distinct registered person from Head Office.

►No separate limit for excise duty exemption in GST. Anybody with aggregate turnover up to ₹20 lakh (10 lakh in Special Category States) is exempt. Exemptions like SSI under Excise shall not exist anymore under GST Regime.

►GST Paid on Advance Payment would not be available for Input Tax Credit.

►No Concept of Payment of GST on MRP Basis.


Saturday, 27 May 2017

Registration under GST

Here is my small write up on registration under GST. Eventually in long run all categories of persons will have no other choice to get registered under GST whether applicable or not, if they want to survive unless it is some small grocery shop dealing with only end consumers. Threshold Limit or Other Exemptions are only an illusion. In the country where to meet own compliance is a tough task for People, who would like to add more compliance as well cost under reverse charge by purchasing goods from an unregistered supplier. Further under sec 24 most of the Suppliers have to get themselves registered, they too can't enjoy benefits of threshold limits. Thanks. [GstSutras13]


Friday, 26 May 2017

Govt is serious about anti profiteering provisions under GST

CBEC Announced Today:

"Telecom services presently attract Service Tax of 14% along with Swachh Bharat Cess (SBC) of 0.5% and Krishi Kalyan Cess (KKC) of 0.5%. Service Tax is a pure value added tax, the above cesses are not. No credit of SBC is available; credit of KKC is set off against KKC. 

As against the above, telecom services will attract GST of 18% in GST regime, which is a pure value added tax with full ITC of inputs. Under GST, telecom service providers can avail IGST credit on domestic/imported goods vis-a-vis credit of SAD not being available now. Telcos are required to re-work their costing and re-jig the prices & to pass on increased credit to the customers by lowering their costs."

Message is Clear. Govt is serious about anti profiteering provisions under GST. Companies going to gain big on account of full availability of Input Tax Credit will be forced to share the benefits with their customers by reducing their cost. If Some Tax Payers are under impression that this clause will also be just a formality like CSR (Corporate Social Responsibility), need to think again! Still have time to re-set their pricing strategy. Govt knows how cost of all essential goods and services increased in other countries post implementation of GST. So, Won't take any risk. Thanks. 

Do not compromise on long-term goals to secure short-term advantage

A CFO has to ensure that the organisation does not compromise on long-term health in its zeal to secure short-term advantage. ~ Nitin Parekh [#CFOSAYS - 2]


Tuesday, 23 May 2017

Instead of being reactive now, have to be proactive ! CFOSAYS - 1


In Past I have shared many quotes stated by great authors full of inspiration and motivation. But, this time, coming with next series of quotes #CFOSAYS. The words of wisdom by learned & experienced professionals from our own domain - Accounts, Finance & Taxation. Keep Learning, Keep Growing. Thanks. :)
“CFOs, instead of being reactive now, have to be proactive. We need to be prepared for anything. ~ Jayesh Merchant, CFO, Asian Paints
[When Economy & Industry is coming out of Demonetisation's affects and ready for India's post independence biggest taxation reform - GST, Time to be Proactive and Super-Active, Don't wait for any invitation, Spread the awareness at micro level.]
[#CFOSAYS - 1]#SukhF_CFO


Friday, 19 May 2017

GST : Chapter Wise Rate List


GST RATE SCHEDULE FOR GOODS
[As per discussions in the GST Council Meeting held on 18th May, 2017]

The fitment of rates of goods were discussed on 18th May'2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods. The information was uploaded immediately after the GST Council’s decision and it would be subject to further vetting during which the list may undergo some changes.

GST rates for certain goods like textile, footwear, biris, precious metals, etc. are yet to be decided by the GST Council. The footnote below the table gives the list of such goods. Good to see the classification of most of the items is based on the principle of VED. (Vital, Essential, Desirable), while deciding the rate & category.
Chapter Wise Rate List : Link (Available at CBEC Website).


Thursday, 18 May 2017

GST: Some Tips for SME’s Accountants


One Evening of September’2009. I was very happy, and then revealed the secret of my happiness to my team, “Guys, soon life of accountants will be totally changed”, next few months would be full of excitement. GST is going to be implemented; IFRS & Direct Tax Code is in process. But Govt’s slow system & dirty politics did not let it happen as planned. IFRS could not be made applicable as expected, revision in schedule VI worked for most of the entities, No Direct Tax Code used to replace Income Tax but continued with small reforms, and now after great struggle, GST is ready to lead the world of Indirect Taxes. For many days/months, we are reading and listening one word “GST Implementation”. Accountants in Big Companies or CA’s in Big Firms would be working day and night to get their system GST Compliant Ready, But Accountants with small companies/firms with small clients are still confused? What to Go? How to Prepare or Get Ready for GST? Just to give them some clarity, How they should procced, for my these young accountants brothers & sisters, I have written this article. Hope they will find it useful.
1)     Clear the Mess: First of all, make a detailed scrutiny of all Input Tax Credit Accounts, There should not be ad-hock balance but supported by all invoices, if there is additional balance make adjustment entries. Similarly All Payable Taxes (Excise/VAT/Service Tax), balance should be clear, against invoices. Make sure on 31st March’17 balance in accounts and returns should be at par, if required revise returns. If not possible, make it by 30the June’2017.
2)     Maintain the Masters: SAP & ERP Companies are working for making their softwares GST Ready for Years, Now Tally and Busy have also issued their tutorials on the same making updated versions ready. You can find many on Youtube shared by Experts, or Blog & Knowledge Portals run by Tally & Busy, Link are on their official websites. First ensure your masters (item master for tax rate, HSN* & SAC Code & Category, Customer & Vendor Masters to incorporate GSTIN Number & Complete Contact Details, Tax Master to Enter New Tax Rates & Slabs) are compatible for GST Requirements.
*List of HSN Codes available on GST portal. (www.gst.gov.in)
3)     Time to Re-Negotiate: This is Purchase Department’s Job, But in small & mid companies, This is also accountant’s responsibility, even if not, you can advise purchase department for the same. There would be many vendors you entered into contract only for tax advantage e.g. if you are registered dealer in Delhi, You got 2 quotes from 2 vendors, Delhi for Rs. 1 Lac + 5% Tax, Haryana for Rs. 99K + 2% CST. You finalize Delhi Vendor in spite of High Rate as you can avail Input Tax Benefit, in other case, Tax is just part of Cost. In GST Regime IGST will also be available, So time to re-negotiate rates subject to other terms & condition. (& Remember your customers can also approach you for the same, so be ready, make each deal win-win for both).
4)     Commercial Property – Fall in Rates: If you are planning to take some premises on lease, just wait, many companies will vacate their additional warehouses and branch offices that were opened only as part of tax planning, to receive or issue tax invoices. Now, Under GST, It is not required, minimum requirement of E-waybill and same tax in major part of country, most companies will prefer to have centralised operation, as more offices/branches – more compliances.  So if you too have such places think again and surrender if not required.
5)     Practice: Create dummy companies in tally/busy. Assume GST has already been implemented. Pass Entries for all applicable transactions, Movement of Goods, Purchase and Supply of Goods, Input Tax Credit Adjustments, Payment Entries, Goods Returns, Disputed Cases to Move in other Accounts for Easy Reconciliations, Issue of Debit/Credit Notes, Job Work/Works Contract Cases, Valuation for Supply to Related Parties including Employees. Transaction with Reverse Charge. Assume all such scenarios & Practice.
6)     Keep Updating Yourself: Govt is updating their portal, issuing guidelines on almost daily basis, make a habit to visit daily GST & CBEC website atleast once. Currently you can find on GST portal, what type of systems required, how to use digital signature. How Dashboard will work for a registered taxpayer & Returns – explained in detail at GST Website. (Link : http://tutorial.gst.gov.in/documents/prototypes.pdf)
This time Industry is looking at accountants, as all relatives look at groom in a marriage ceremony, do not shy, but shine with your knowledge. Do not say I am not a tax person, I only make cheques or post entries, It does not matter what you do, If you call yourself an accountant (no matter what designation you hold, an executive or a CFO), you must have good idea about GST. Keep Learning. Keep Growing. All the Best. Thanks. 

Monday, 15 May 2017

Value of supply of goods or services or both between distinct or related persons under GST

Greed – The Normal Nature of Human. Never gets satisfied, Hate Taxes, To avoid taxes apply all possible means, by diverting profits into other entities was also such an innovation by a smart business person. But Govt is also smart. Set different rules for transactions with Related Parties. Earlier it was only part of Direct Taxes as Transfer Pricing Rules, but later it also attracted Indirect Tax Officers. In VAT Assessment & Special Audits, details of transactions with related parties were specifically asked, For Custom Duty – Set Special Valuation Branch. So How GST could be an exception. Separate Valuation Rules provided for Valuation for supply between related parties.

Nothing New Except Two things amazed me. Adding Distinct Parties (Own Branch in Same or Other State with different registrations) and treating Employers and Employees to be related parties. It means few companies run by some kind owners who supply goods or services to employees free of cost or at heavy discount along with other facilities have to pay tax on differential value. Only relief is Section 7 (Schedule I) that says, “Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.”


Here is my small write up on Valuation Rules applicable for Distinct or/& Related Parties. Thanks.
[GstSutras12] #SukhF_GST



Friday, 12 May 2017

GST Registration to be reopened for 15 days from 01st June, 2017.


Score Card of GST in terms of preparation for the roll-out of Goods and Services Tax (GST) from 1st July, 2017. Where have we reached as on 11th May'2017 :
1) 60.5 lakh taxpayers out of 84 lakh enrolled as of now; Registration to be reopened for 15 days from 01st June, 2017. 2) Out of 62,937 tax officials, 24,668 tax officials have been given hands-on training; remaining to be trained by 15th June, 2017 3) 3200 taxpayers from Centre, States and UTs to get hands-on experience of GST System software in a pilot from 02nd to 16th May, 2017.
Source: PIB, Govt of India.


Wednesday, 10 May 2017

GST on E-Commerce Companies : An Overview

Here is my small writ up on Impact of GST on E-Commerce Companies. Since, On Account of Open Definition of E-Commerce under GST, Non Applicability of Threshold Limit and Non Availability of Composition Scheme  Many new companies would emerge (or Forced to Register) as E-Commerce Companies. There is mix Impact, Positive as Simplification of Tax, Negative as Increase in Number of Compliance.  E-Commerce companies has to maintain record for all Sellers (Based on Merchant Id/GSTIN Number), Has to deduct TCS, If payment against supply received by E-Commerce Company on the behalf of supplier. Has to file monthly return for supplies made  by seller on it's portal in the capacity of E-Commerce Company and Regular Returns for Supply made out of own (Purchased) Stock.

People says, GST will make life of E-Commerce Companies Simpler, AND I was thinking, who made it complex. Was it really so difficult to set rule (law) for E-Commerce Industry, Who created all Mess, Cascading effect of Taxes. Can't Govt grant special status to E-Com Companies?

दर्द जिसने (Govt) दिया दवा भी वो (Govt) दे रहा है, 
और लोग कह रहे हैं, शुक्र है शुक्र है शुक्र है तेरा।  :)

Thanks. [GstSutras11] #SukhF_GST


Happy Buddha Purnima to All

Happy Buddha Purnima to All !

I take this opportunity to refer two great Buddha Quotes, I refer many times in my personal and professional life.

1. You only lose what you cling to - This is about attachment. Many people feel offended or hurt even on many minor issues. If their seat is changed, chair is replaced, office desk top or laptop is replaced, they feel, like their body parts are being replaced. Many people do not sell their old scooter/bike/car for years. So, you feel hurt only when separated from things, you cling to. It hinders the growth. It does not allow you to move ahead in life.

2. You think, you have time. - Lord Buddha must have said these words in relation to spiritual growth of a soul, but for me being an accountant, don't wait. Finish the task that can be finished in that moment. Many people wait to start audit, before they organize all files and documents. Generate Reports only when asked. So, Work like there is no tomorrow, Finish that can be finished today. Messenger of Death (Auditors/Tax-Inspector/Investigator) can approach anytime. Thanks.




Tuesday, 9 May 2017

Enrollment of workers with EPFO

When Demonetization Drive Began in November'16, Many People and Leaders Said, They were not given any chance to opt non-cash mode. Fact is, there were many steps Government took, from Introduction of Jan-Dhan Accounts to promotion of digital apps for payment. Now, Govt is giving chance to all such establishments not complying the provisions of labour laws specially PF, ESI and Bonus. From July'17 there can be move by various labour law departments with surprise visits at factories and offices. So Keep records ready, get labour laws health check conducted by Accounts & HR Teams together or ask your consultants, if outsourced. Do it at time or will have no time to correct things. It will include maintenance of Records & Documents, Hanging of Extracts from Various Laws at Notice Board & Ensuring compliance at Contractors End (To have Proof - Copy of Challans/Returns). Thanks.


Monday, 8 May 2017

Goods and Service Tax Network (GSTN)

GSTN:

The Dream of one nation one tax is coming true. It is like Titanic that will replace many small ships/boats, So, It was essential to form a team of professionals who can run, manage & control a ship like Titanic. And came into existence – Goods and Service Tax Network. (GSTN). To drive a ship like Titanic. 

GSTN will be the Face of GST.  Registration of Tax Payers, Fling of Returns, Approving Input Tax Claims, Maintaining Huge Data of about 3.5 Billion Invoices Every Month as Expected Now. Many Teams of GSPs, ASPs will be part of GSTN. Very Advance Payment Gateway.

Today Not Only Tax & Accounting Professionals but IT Professionals (Software, Hardware & Networking) also watching the Way, GSTN is going to Execute this Mega Show.  (Not Only India, But Whole World)

But things are not easy, It’s IT Firm itself was under scrutiny for tax evasion cases few days back, questions have already raised why 51% ownership to private companies, specially those owned by foreigners. Why not considered SBI that managed Receipt of Direct Taxes & Labour Laws and PNB That managed Custom and Excise for Decades successfully. Are we counting on right team/s, after all it is just not tax, Now it is like granting access on major part of Indian Economy. Thanks. [GstSutras10] #SukhF_GST


Saturday, 6 May 2017

In Last 20 years, World of Taxation has fully changed.

Almost 18 years ago, 8 am, Lodhi Road Premises, Me and My Boss were standing there, Last date to file ROC Return, We had about 4 returns of group companies. There were long queues on almost every counter.  Our CS had to leave for native place for some urgency, so we had to visit ROC Office. It was like mini trade fare. 100s or may be 1000s of accountants & professionals. Those used to be the place of Professional Networking when Linkedin and Twitter did not exist. Full day gone there.

8 years passed, ROC had initiated E-Returns. I went to Gurgoan’s Udyog Vihar’s Facility Centre, The Guy who was receiving returns, checked my return and said, sorry sir, it can’t be filed. I asked, why? He replied size of pdf file is exceeding the limit. It took us almost 2 hours to scan 50 pages. I thought, again had to rush to office and scan with lower resolution. But that Guy, said, “Don’t worry Sir, We’ll help you.” He put all papers in Scanners Tray (That Year, Return was submitted in both modes, manual and electronic) and just in 2 minutes, our file was ready. He said, We are here to help you sir. This is high technology scanner of 5 Lakh Rupees. It was an amazing experience. From long queues of Lodhi Road Office to AC Facility Centre of ROC.

Today When I thought to write on admin part of GST, What Infra & Technology will be used, who would be stakeholders, How large volume of Tax Payers with billions of Transactions would be managed? These two incidences, flashed in my mind. In almost 20 years, World of Taxation has fully changed and this journey is yet not finished. Next Post would be on GSTN. Thanks.