By CA. Vikash Surana on March 21, 2023
Basic compliance for corporates
Apart from the normal deductions of TDS on Salary 192, Interest on unsecured/private loans 194A, Job work/contract 194C, Brokerage/commission 194H, rent 194I, rent machinery 194-IA, Legal/Professional fees 194J, Purchases of goods, Consumables/Electricity payments 194Q. Care must be taken for deduction of TDS 194C on transport contractors, Annual maintenance contracts, Repairs of car, machinery, Shed & Building etc. 194A Bill discounting private parties.
On sale of scrap TCS @ 1% to be charged in the sale invoice. If the purchaser claims to be a manufacturer declaration in form 27C is a must from the buyer at the very beginning of the financial year, all these declarations need to be filed before the jurisdictional CIT every year.
PAN verification of vendors through TRACES is advisable since incorrect PAN may result into higher TDS/TCS demand from TDS-CPC.
Negative list of ITC under GST
- Food & Beverages, Outdoor catering
- Motor vehicles and other conveyances
- Rent a cab service
- Health Insurance service
- Membership of a club, health & fitness Centre
- ITC on goods and services used for self-construction of building cost of which is capitalized in books.
List of services under RCM in GST
- Goods Transport Agency (GTA) services by road
- Legal services provided directly or indirectly, by advocate
- Services supplied by the Central / State Government, Union Territory or local authority.
Payment to MSME Vendors
Identify all vendors / creditors having Udyog Aadhaar Number (UAN)
Section 15 of the MSMED Act provides that in no case the period agreed upon between the supplier and the buyer for payment of invoice in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance, if no agreed period, then payments must before 15 days from date of acceptance. Company must file e-form MSME-1 every half year with Registrar of Companies mentioning all the transaction, wherever payment made after 45 days.
Employee’s contribution ESI/PF
If not paid before due date under the relevant Acts, i.e., 15th day of following month, disallowance under the Income tax Act to the extent of Employee’s contribution/deduction.
“All information contained herewith is provided for reference purpose only. Surana Naveen Vikash & Co (SNV), Chartered Accountants ensures accuracy and reliability of the information to the best of its endeavors. While the information contained within this Blog is updated, no guarantee is given that the information provided in this Blog is correct, complete, and up to date. SNV makes no warranty or representation as to the accuracy, completeness, or reliability of any of the information contained herein and disclaim any and all liability whatsoever to any person for any damage or loss of any nature arising from or as a result of reliance on any of the information provided herein. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.