How To Claim GST Input Credit : Conditions To Be Satisfied

What Is GST Input Credit? [AdSense-B]

First of all, let us know what is GST Input Credit. Well, GST Input credit is nothing but a balance of the amount of tax you paid at the time of purchasing goods that is kept safe until you pay your tax for your output. Now, when you pay your tax of output, automatically the previous balance amount kept safe for you will automatically be used and your total tax to be paid will get reduced. We will also discuss how to claim GST input credit but before that, let’s understand by an example how this thing actually works

Example: Suppose X bought goods for Rs 100 and paid Rs 18 additional as GST(Total: Rs 118). Now X sold goods to Y for Rs 200 and charged GST of Rs 36(Total : Rs 236). Now, X can claim GST input credit of Rs 18 that he paid at the time of purchases while paying tax to the government. (i.e net GST, X need to pay is only Rs 18).

How To Claim GST Input Credit [AdSense-B]

To claim GST input credit –

You must have a tax invoice(of purchase) or debit note issued by registered dealer
Note: Where goods are received in lots/installments, credit will be available against the tax invoice upon receipt of last lot or installment.
You should have received the goods/services
Note: Where recipient does not pay the value of service or tax thereon within 3 months of issue of invoice and he has already availed input credit based on the invoice, the said credit will be added to his output tax liability along with interest.
The tax charged on your purchases has been deposited/paid to the government by the supplier in cash or via claiming input credit
Supplier has filed GST returns
Possibly the most path breaking reform of GST is that input credit is ONLY allowed if your supplier has deposited the tax he collected from you. So every input credit you are claiming shall be matched and validated before you can claim it.
Therefore, to allow you to claim input credit on purchases, all your suppliers must be GST compliant as well.

There’s more you should know about input credit –

It is possible to have unclaimed input credit. Due to tax on purchases being higher than tax on sale. In such a case, you are allowed to carry forward or claim a refund.
If tax on inputs > tax on output –> carry forward input tax or claim refund
If tax on output > tax on inputs –> pay balance
No interest is paid on input tax balance by the government
Input tax credit cannot be taken on purchase invoices which are more than one year old. Period is calculated from the date of the tax invoice.
Since GST is charged on both goods and services, input credit can be availed on both goods and services (except those which are on the exempted/negative list).
Input tax credit is allowed on capital goods.
Input tax is not allowed for goods and services for personal use.
No input tax credit shall be allowed after GST return has been filed for September following the end of the financial year to which such invoice pertains or filing of relevant annual return, whichever is earlier.

Conditions for claiming Input Tax Credit [AdSense-B]

You must be registered under GST
Supplier of goods/service must be registered under GST
Supplier has issued ‘Tax Invoice’ to you
Supplier has actually deposited the tax to the government.
Supplier has furnished the GST return and has credited your GSTIN by amount of GST paid by you to him
If the inputs are received in installments, you will be able to get credit only when last installment is received.
Payment must be within 180 days of the date of issue of invoice. In case you have not made the payment within 180 days, credit availed by you will be reversed. However, you will be able to claim credit once you make the payment again.
In case of part payment, proportionate credit will be allowed. [AdSense-B]

Also check : 1) GST Do’s and Dont’s

2) Impact Of GST on Households

3) GST Invoice Formats

Complete Guide : Will I Get The GST Input Credit Or Not?

Complete Guide : Will I Get The GST Input Credit Or Not? [AdSense-B]

GST has been welcomed with all the pomp and show, and deservingly so. It has inherent advantages. We all know that amount paid as GST on purchases or even expenses can be claimed as GST input credit. This was not possible in the earlier regime of VAT and Service Tax.

Example: If you were dealing in sale of goods where VAT was chargeable and had paid service tax for availing service of Chartered Accountant, you could not avail the credit of service tax paid to your CA against payment of VAT. This is now possible under GST since there is no difference in tax on goods or services. Now, if your VAT payable on goods sold is Rs 30,000, and if you availed services of a CA and paid GST of say, Rs 18,000, then you will get a GST input credit of Rs 18,000 against payment of Rs 30,000 GST payable. Hence, you net GST payable will be Rs 12,000 only.

Woaahh, what a relief to an entrepreneur. But, but, but, there is little sad news, just little.

There are certain expenses, on which credit will not be allowed.

…

GST Rules And Guidelines : Do’s And Don’ts (Format Attached)

GST (Goods and Service Tax) is a tax levied when a consumer buys a goods or services. The main aim of introducing GST is to bring all the taxes in a single umbrella. This bill helps to eliminate the cascading effect of taxes on production, distribution prices on goods & services. Goods & service tax refers to indirect tax which replaces taxes levied by the central & state government.
GST bill abolish indirect taxes like VAT, Service tax, excise, octroi. This post will brief you about GST Rules and guidelines and what you should do and what you shouldn’t [AdSense-B]

Rules & Guidelines

✓ Issue ‘Tax Invoice’ for taxable goods or services (format attached)

✓ Issue ‘Bill of Supply’ in case of exempted goods or services (format attached)

✓ Ensure different serial number for every invoice

✓ CGST, SGST to be equally charged for local sales. Example, for 12% GST sale within your state, 6% SGST and 6% CGST to be charged

✓ IGST for any interstate sale. For any sale outside your state, IGST will be imposed. Example, on supply of goods or services of 18%, from Delhi to Gurgaon or any other state, IGST to be charged at 18%.

✓ GST to be charged on any advance received against supply of goods and services. Example, If a person has given order for buying stationery amounting to Rs. 10 Lakhs and gave advance of Rs. 5 Lakhs, then he have to pay GST on that advance to the supplier at that time only.

✓ At the time of receiving advance amount, you will have to give the Receipt Voucher (format attached). Charge GST on that advance amount

✓ On sale of any cash sale of more than Rs 50,000, it is mandatory to write name and address of the buyer/service recepient [AdSense-C]

✓ Payment Voucher: A registered person who is paying tax under reverse charge mechanism shall a payment voucher at the time of making payment to the supplier. The payment voucher should contain the prescribed particulars. (format attached) Example: Payment of rent to landlord who is ot registered under GST, will amount to reverse charge mechanism. Hence, payment voucher to be issued by us to landlord.

✓ Receipt Voucher: To be issued on receipt of advance payment. (format attached)

✓ Refund Voucher: Where a receipt voucher is issued on advance payment and subsequently no supply is made and no tax invoice is issued, the registered person may issue a refund voucher to the person who had made the payment (format attached)

✓ Revised Invoice: These are to be issued against the invoices already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him.

✓ Credit Note is to be issued where supplier has charged higher amount of tax whereas tax payable is less than actually taken from receiver in such cases supplier has to issue credit note.

✓ Debit Note is issued to the recipient for the tax amount not being charged by the supplier i.e. when supplier collects lower amount of tax than tax amount payable on such supply of goods and/or services

DO’S

[AdSense-B]

Maintain record of each and every document. Pay more attention than before on record keeping
Be very careful on charging CGST, SGST and IGST.
Issue tax invoice on sale of taxable goods/services – Issue Bill of Supply on sale of exempted goods/services
Take Receipt Voucher from seller whenever you pay advance
Take tax invoice on every purchase of goods and services. Make sure it mentions advance paid earlier, if any, in that tax invoice. – Issue payment invoice is tax paid on reverse charge basis
Inform your GSTIN / ARN to all your suppliers of Goods & Services.
Obtain GSTIN of all Suppliers & Buyers.
Update your accounts regularly
Contact us whenever in doubt

DON’TS [AdSense-B]

Don’t buy from unregistered dealers. You won’t get input tax credit and you will have to pay GST on their behalf, due to ‘Reverse Charge’ mechanism
Don’t forget to issue separate serial number for invoice
Don’t do any over writing of invoice
Don’t cancel the invoice. Use credit note in case of cancellation of supply of goods/services
Don’t hesitate to ask us for any clarification

GST Format

Also Check Out ==>

1) How To Register For GST : Step by step guide

2) Documents Required For GST Migration

3) GST Rate List

Society Registration : Get a new society registered

Philanthropy is not about money, it’s about feeling the pain of others and caring enough about their needs to help. If you are in for a generous cause, we would definitely support you in the best possible way. This post will guide you everything about Society Registration

The idea of incorporating a non-profit-making company in India is not a new term as it has been in the business community for ages. In the Companies Act 2013, it is mentioned in section 8 and this is why it is popularly known as the Section 8 Company. The primary objective of incorporating such a company is to encourage science, sports, art, education, research, social welfare, religion, and environmental protection, etc. where profit doesn’t play any vital role.

As far as its structure is concerned, it is much like a trust or society as it is registered under the Central Government’s Ministry of Corporate Affairs. A Section 8 Company enjoys many privileges and exemptions under Company Law.

A Non-profit Organization is a company that has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object;
Intends to apply its profits, if any, or other income in promoting its objects; and
Intends to prohibit the payment of any dividend to its members

We make it easy for you to incorporate a Section 8 company by providing all necessary legal and professional support in respect to incorporation and business management. We have a special discount for those working for the welfare of society.

What are the Advantages of Society Registration?

Ease of Formation

A Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. A registered partnership firm can be a member in its own capacity.

Limited Liability

The greatest benefit of Section 8 Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Being the biggest advantage with this type of company, it means that the owners are not personally responsible for business debts and obligations of the incorporation.

Separate Legal Entity

This is the most prominent quality of a Section 8 Company. It refers to the statement that the company and its members are completely distinctive. The biggest advantage of a section 8 company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.

Greater Flexibility

A Section 8 company is required to perform lesser legal formalities as compared to a public company. It enjoys special exemptions and privileges under the company law.

Perpetual Succession

Death, insolvency and insanity, etc of any of the members does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members. In case of the death of the owner or transfer of shares, your business won’t get affected. There will be no effect on the firm’s continuance.

What are the Tax Benefits of Society Registration?

A Section 8 company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.

How long does it take to form a Society?

A Section 8 company can be formed within 10 days, and if documents are ready, just a week is enough.

What is the process for Society Registration

Apply DSC and DIN of directors
Apply Company Name
Prepare project report for next 3 years
Obtain license
Preparation of MOA, AOA, and other incorporation documents
Submission of Forms
Tadaaa..!! Certification of Incorporation is ready..! You are ready to serve society.

Reach out to top-rated Chartered Accountants of Delhi, as listed below to initiate the process

Greenwolf Advisors
Private Limited

+91 9711430728

Moneyम्जी – India’s Own Financial Consultant

+91 7011497897

Khubchandani & Co.
Chartered Accountants

+91 9711088214

VAT And CST Registration : (Not Applicable Anymore – Replaced with GST)

–> Read about GST Registration here

VAT And CST Registration

Vat And CST Registration : If you are a seller, and your turnover crosses certain threshold limit of Rs 20 lakh in Delhi or Rs 10 lakh in other states, then aapki ‘VAT’ lagegi..If transactions involve movement of goods from one state to another, this tax is levied under Central Sales Tax Act (CST),1956.

Sales tax / state VAT is payable by the seller to the government. Ordinarily, sales tax / state VAT is recovered from the buyer as a part of consideration for sale of goods.

CST is not dependent on turnover criteria. Hence, if you are selling products outside your state, then CST registration is mandatory.

Documents required for VAT and CST registration:

Self attested PAN card copy.
Two Photographs.
Self attested copy of any one of the Identity Proof like, Passport, Voter ID & Aadhar Card
Self attested copy of any one of the Address Proof like Bank Pass Book/Bank Statement, Telephone Landline Bill Mobile Bill & Electricity Bill
Premises Address proof Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill, AND Rent Agreement (If Rented) AND NOC for doing Business & for taking Registration
A copy of Cancelled cheque
Name of the proposed unit
Objects of business for which registration is required
Board Resolution for authorization of Service Tax Registration in case of comapny
Private limited companies must also submit the Memorandum and Articles of Association, Form 7, Form DIR 12, Form INC 22 and Certificate of Incorporation,
While Partnerships must submit the Partnership Agreement.
In addition, security deposit or surety or reference maybe required to obtain VAT Registration based on the State in which the business operates

We can get you VAT registration just for Rs 3,000/-

Financial Modelling | Build Finance Models

Financial Modelling | Forecast Your Business

Know the Financial Modelling direction of your business: Where you are and where you will be in the next three to five years.

Know all about Financial Modelling in a 2-minute read article.

Of course, no one has a crystal ball, but we can help you develop forecasting tools to Project the direction of your business.

Think of it as a road map for your business. We can help you create it, giving you a clear understanding of where your business is heading.

Depending on your particular needs, business forecasting can involve:

producing full financial forecasts, considering elements such as plans for business growth, assumptions for future trading and market conditions
providing constructive advice on improving existing forecasts
helping with the research and financial assumptions involved in generating a forecast
carrying out regular reviews of the forecast, helping keep your business on track, and recommending any necessary changes to the forecast
assisting you to set Key Performance Indicators to monitor your progress.

We will do an extensive analysis of your financials and let you know how is it performing and where it can be improved.

Accounting and Bookkeeping : Hire Chartered Accountant

Accounting Services in Delhi or Bookkeeping Services in Delhi can be used interchangeably. However, in an actual sense, Bookkeeping and Accounting perform different functions. The recording is a part of the accounting procedure that records all the financial transactions and has disparities with accounting. It helps in organizing the financial records that help the management to analyze the business performance. Helps the organization in providing a reliable measure of its performance.

The recording is the primary step in the accounting process. It is a procedure that deals with the undertaking related to the categorization and recording of financial data in an organized way and record-keeping that helps in the accounting process. Additionally, helps in providing the financial statement of business at the end of every financial year.

Further, It helps in identifying the monetary transactions and events which ultimately helps in maintaining proper financial accounts. This process includes the preparation of reference documents for financial transactions and other business activities.

It deals with various methods. The most common ones are Double-entry and single-entry. It is the process where the bookkeeper records all day-to-day monetary transaction of a business

If you want to know why your business is chaos without accounting, you can check here. Nobody likes a messed up house and a messed up financial transactions. Just like you can find things easily in clean house, you can find your strengths and weaknesses easily with proper accounting and bookkeeping.
We will help you in keeping your transactions organised, so that you can take an informed decision.

The service involves preparing and maintaining accounts on suitable periodical basis as per requirements of the clients. We are familiar with the accounting needs and desires of high growth, fast paced companies. This includes the writing up of accounts and the preparation of financial statements.

Also Checkout => All about GST you need to know

Our Services covers all aspects of accounting and bookkeeping, Including: –

Entry of transactions
Journal Entry
General Ledger
Assets /Equipment Ledgers
Expenses Ledger
Accounts Receivables
Accounts Payables
Bank Reconciliation
Trial Balance
Income Statement (Profit & Loss)
Balance-sheet
Cash Flow Statement
Preparation of Annual Financial statements

Business Compliance: Hire a Chartered Accountant

If you have given birth to a baby, would you just leave her/him like that? No na? You will take due care of her/him so that she/he do not get into a trouble. You will take good care of their health so that they are nourished better. Then I guess you are a responsible parent and a responsible entrepreneur too. You will take good care of your company and won’t let your business get into trouble of paying fines and penalties. You just need to follow business compliance with legal requirements so that your business can run smoothly.

we will help you out in following business compliance. Check out what can we do for you:

Accounting: Not only does accounting help you in keeping things organized, helping you in effective decision making, but is also a mandatory compliance. Both Companies Act and Incoma Tax Act call for maintaining books of accounts. You need to record all your financial transactions, including income, expenditure, assets, liabilities, etc , including the documents supporting the same.
Appointment of auditor: Auditor is a Chartered Accountant who audits or verifies that the accounts you have maintained are true and fair, and are compliant of all the laws. The first auditor of the company must be appointed within 30 days of the incorporation of the company, who will continue the office until the first Annual General Meeting of the company. Before the appointment, the auditor needs to give a written consent that he meets the requirements of the Companes Act and is not disqualified (read here to know about qualified and disqualified auditor).
Board Meetings: Board meetings are held by directors of the company to discuss agendas and take important decisions. Minimum 4 board meetings must be held every year, and the time period between two board meetings should not be more than 120 days. 1/3^rd or more number of total directors should attend the meeting, and minimum directors attending the meeting should be 2. A notice for board meeting should be sent at least 7 days before the board meeting to all the directors. “Just don’t forget to save minutes of the meetings”.
Holding an Annual General Meeting: An annual General Meeting of the company is required to be held every year, where financial statements are approved, auditor is appointed, salary of directors is decided, dividend is declared and other plans of the company are discussed. The meeting must be held within 6 months of the end of the financial year, i.e, before September 30.
Filing Annual Return and Financial Statements: Every private limited company is required to file its audited financial statement (within 30 days of Annual General Meeting) and annual return (within 60 days of Annual General Meeting), with the Registrar of Companies (ROC).
Filing Income Tax Return: Filing and Income Tax Return is mandatory for a company. If you don’t have a revenue, it is even more beneficial to file a return. Why? Coz your losses can be carried forward till 8 years. Audited financials are necessary for filing an Income Tax Return. Last date for filing ITR for companies is September 30.
Maintenance of registers: A company needs to maintain certain registers like register of charges, register of members, register of directors and key managerial personnels, register of debenture holders, minutes books, register of loans, register of investments, register of contracts in which directors are interested, etc.

Other business compliance include:

Company name change
Company Address Change
Increase in authorised share capital
Reduction in share capital
Add/remove directors
Change of objects
Obtaining DIN and DSC
Surrender of DIN
Private placement of shares
ESOP
Preparation of Directors’ Report
Preparation of notices of board meetings, minutes and their maintenance
Preparation of annual return and uploading
Consultancy on any issue pertaining to companies Act

Click here to connect with Chartered Accountant

Income Tax Return Filing : Full Guide & Offer

Income Tax Return Filing

Teach your children concept of taxation. Eat their 30% ice cream!

But, at the same time, don’t forget to pay income tax and file your return. All individuals, HUF, Association of Persons and Body of Individuals with income above basic exemption limit have to file return for a financial year ending 31st March. Whereas, it is mandatory for companies and firms to file return, irrespective of income. We will help you in income tax return filing.

Due date for individuals is before July 31, While for companies and those liable for tax audit under section 44AB, due date is 30th September.

If your income tax liability crosses Rs 10,000 in a financial year, then let us remind you that the government is not patient enough to wait till year end to collect tax from you. You will have to pay tax in installments to the the government throughout the year, in the form of advance tax. Click here to know more about advance tax.

Also Checkout => All about GST you need to know

We help you in:

Guidance in compilation of corporate tax returns such as Income tax, & e-filing thereof with Central Processing Centre of Income Tax Department.
Online verification of Tax demand, Tax Refund & review of tax credit available on IT website.
Tax compliance – Calculation of estimated advance tax liability on quarterly basis and review thereof on each quarter.

Click Here to Connect with a Chartered Accountant to get your Income Tax Return Filed

TAN Registration and TDS Return Filing: Full Guide

Let us tell you what is TDS, whether you required TAN registration, also, if you need to do TDS Return Filing or not.

When you offer a ‘prasaad’ in the place of pilgrimage, have you observed, they slice out a piece of it before you can take it with you? Later they also give it back to you.

Same principle! The one making your payment also slices out a part of your payment and credits it into the government’s account. That amount gets credited in your Permanent Account Number, and you can adjust it with your tax payable or claim a refund later. Simple!

It is mandatory for those liable to deduct TDS to credit TDS and file quarterly TDS return before the due date, violating which, invites interests and penalties. The tax shall be paid at the rates prescribed by the government. Click here to know TDS rates.

TDS Payment: Due Date

For non-government assessee:

S. No	Particulars	Due Date
1.	Tax Deducted every month, except March	7^th of next month
2.	Tax Deducted in March	30^th April

All the corporate assesses and those covered under Tax Audit under section 44AB of the Income Tax Act should deposit TDS online mandatorily. Others can also deposit the same with banks.

Let Greenwolf Advisors tell you another secret. You can pay TDS quarterly also, if Assessing Officer, with prior approval of the Joint Commissioner, permits the same. In that case, TDS due dates are:

S. No	Quarter ends on	Due Date
1.	30^th June	7^th July
2.	30^th September	7^th October
3.	31^st December	7^th January
4.	31^st March	30^th April

What if I don’t pay TDS?

Well, 1.5% interest per month awaits you then. Also, the interest will be calculated from the month of date of deduction till the date amount is deposited with the government. Pay attention! Date from which amount is deducted, and not the due date.

Example: If you deducted TDS on 20^th January and instead of depositing before the due date of 7^th February, you deposited the same on 15^th February, then the interest will be calculated from? The month of January, and not 7^th February. Pheww..government is mean if you don’t pay on time.

Ok, I paid TDS every month before due date, now what? File TDS return every quarter. Click here to check due dates for TDS returns and what happens if you don’t file the same.

What Is GST Input Credit? [AdSense-B]

How To Claim GST Input Credit [AdSense-B]

There’s more you should know about input credit –

Conditions for claiming Input Tax Credit [AdSense-B]

Also check : 1) GST Do’s and Dont’s

Complete Guide : Will I Get The GST Input Credit Or Not? [AdSense-B]

GST Rules And Guidelines : Do’s And Don’ts (Format Attached)

Rules & Guidelines

DO’S

DON’TS [AdSense-B]

GST Format

Also Check Out ==>

What are the Advantages of Society Registration?

What are the Tax Benefits of Society Registration?

How long does it take to form a Society?

What is the process for Society Registration

–> Read about GST Registration here

Financial Modelling | Forecast Your Business

Accounting and Bookkeeping : Hire Chartered Accountant

Also Checkout => All about GST you need to know

Our Services covers all aspects of accounting and bookkeeping, Including: –

we will help you out in following business compliance. Check out what can we do for you:

We help you in:

TDS Payment: Due Date

Company Registration

Other Registrations

Corporate Compliance