5 Steps for private limited company registration

The name of the company is the first and foremost decision that a person makes for new company registration. It is the first identity that goes out to consumers or investors that’s why it needs to be unique, desirable and one of its kind to make it stand out of the rest. Therefore, choosing a right name of new private limited company registration becomes extremely important and should be done meticulously.

Accounting Services to Avoid Income Tax and GST Notices

  • Post:CA Nayani Agarwal
  • August 5, 2020
Accounting services

Accounting services is becoming complex, given the advent of new laws and legal requirements. Therefore, hiring a professional accounting firm is absolute necessary for business operations.

A Memorandum of understanding (MoU) was signed on 21st July 2020 between the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) to facilitate the sharing of the data between the organizations smoothly. It supersedes the MoU signed between CBDT and the erstwhile Central Board of Excise and Customs (CBEC) in the year 2015. It aims at curbing tax evasion by the businesses by cross-checking of information available with both the tax authorities. As per the proposed amendments the CBDT will be sharing vital fields with the GST offices:

  • Status of filing of ITR
  • Turnover of the organization
  • Gross total income
  • Turnover Ratio
  • Gross total income range
  • Turnover range

If a request is made by the GSTN Official, the principal director of Income-tax shall share all those details that are present in the IT Return. The main objective here is to match the income declared in income tax and GST returns and identify if there is any tax evasion in both direct and indirect tax. The order also contains the provision for spontaneous sharing of data and automatic sharing of data. The modalities of this are to be decided by the respective authorities. A formal sharing of data between direct and indirect tax authorities means that the businesses have to be extra careful while filling up their tax returns and avoid any mismatches. Data sharing between direct and indirect tax authorities is an indication that the government will not spare taxpayers from escaping tax payable under any laws. With more information in hand, the government would be able to validate the amount of income disclosed both under the income tax and GST which would enable the authorities to identify under-reporting or non-reporting of income if any. Therefore,accounting firmand GST consultants are required to ensure that the consistency of information under GST and Income tax returns. This will help you to avoid notices from Income tax and GST department.

With the introduction of GST, the movement of the goods and services from the manufacturing to the consumption site cannot remain unchecked and unaccounted. GST is filled online which makes it easy to share interchange of information between the IT department and the GST department greater accountability, assessment and tracking can be established. This information sharing will cover the tax evaders from multiple angles thereby reducing the instances of corruption to a minimum. Thus, it is going to be a win-win situation for the government and the country at large, when the Income Tax Department and Goods and Services Tax System work hand in glove with each other. The foreseeable scenario would only bear positive results for your growing economy.

Given the latest development, accounting services from a professional accounting firm has become imperative for smooth functioning of the business.

Patron Accounting is one of the leading accounting firm in Pune of experienced and qualified professionals offering various services such as Accounting Services, Online GST Registrations, Tax Planning, Stock Audit, GST Return filing, Business Registration Services. Having an experience we always come with plan to lay out a smooth process that is effective and efficient. Owing to large networks across India, we tend to deliver your accounting needs simultaneously at multiple locations.

About Author

CA Nayani Agarwal is a Chartered Accountant who scored All India Rank-24 and have 6 years of experience in the field of Auditing, GST, Income tax and Accounting. She has given consultation to distinct industries over these years.

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