Audit under GST in detail

Audit under GST in detail

Audit under GST in detail

The GST regime continues to promote the scheme of self-assessment like erstwhile indirect tax laws and Audit of records of tax payers is the basis for the proper functioning of self-assessment based tax system. The GST regime continues to promote the scheme of self-assessment like erstwhile indirect tax laws and Audit of records of tax payers is the basis for the proper functioning of self-assessment based tax system.

As per section 2(13) of CGST Act, 2017. GST Audit means examination of records, returns and documents maintained and furnished by registered person to check the following:-

  • Verify the correctness of turnover declared.
  • Input tax credit availed and utilized.
  • Exemptions and deductions claimed.
  • Rate of tax applied in respect of supply of goods or services etc.

The following three types of GST audit are envisaged under the GST Law:-

  1. GST  Audit u/s 35(5) of Act, if turnover exceeds prescribed limit (i.e  Rs. 2 Crore)
  2. GST Audit by tax authorities u/s 65.
  3. Special GST audit direction from department u/s 66.

Types of Audit in GST Law

1) GST Audit u/s 35(5)
As per section 35(5) with rule 80, in case registered person whose aggregate turnover during the financial year exceeds Rs. 2 crore, he shall get his accounts audited by Chartered Accountant or Cost Accountant.

Here the term used is aggregate turnover and not turnover in state. Aggregate turnover is computed on all India basis having same PAN. Therefore, if a registered person is liable to gets his accounts audited under section 35, then all the registration obtained under same PAN will also be liable to GST audit.

For example, if a company XYZ Ltd has operations in two states Haryana and Rajasthan, and turnover in Haryana is 3.75 crore and in Rajasthan is 25 lakh, then GST audit to be conducted for both the states. GST Audit under this section to be conducted GSTIN wise.The registered person whose accounts are to be audited, he shall submit audited accounts along with his annual return in Form GSTR-9C and a reconciliation statement reconciling turnover in audited financial statement and return furnished for financial year.

2) GST Audit by u/s 65
It is important tool in tax administration to ensure compliance of law and prevent revenue leakage. This section authorizes conduct of GST audit by commissioner or any officer authorized by him of transactions of registered person only. It means GST audit of unregistered person cannot be carried out under this section even if he is liable to register. The commissioner may issue general or specific order to authorize officers to conduct GST audit.
Before commencement of audit, proper officer will issue a notice in form ADT-01 at least 15 days prior to commencement of audit. The audit may be conducted at place of business of registered person or in the office of proper officer. During audit, officer will ensure correctness of turnover declared, input tax credit availed and utilized, deductions and exemptions claimed etc. The GST audit under this section be completed within 3 months (subject to extension by commissioner) from commencement of audit. On completion of audit, officer will inform the discrepancy noticed with registered person and after considering reply of registered person, his findings to be finalize.
The proper officer will inform the final findings of his audit to the registered person in form ADT-02.The finding under GST audit may be used by proper officer to initiate action u/s 73 or 74.

3) Special GST audit direction by department u/s 66
Special GST audit direction under this section is issued to registered person only when any proceeding (being scrutiny, enquiry, investigation or any other proceeding) is pending before him and having regard to nature and complexity of case and interest of revenue , he is of opinion that

  • Value has not been correctly declared    OR
  • Credit availed is not within normal limits

In such a case, proper officer with prior approval of commissioner, issue direction to registered person in form ADT-03 to get his records including accounts audited by Chartered Accountant or cost Accountant as nominated by commissioner (Auditor is not choosed by registered person).

The audit direction under this section may be issued even if accounts/records of such person is already audited under this act or any other act.

On completion of audit, Auditors will submit his report to proper officer within 90 days (subject to extension) and registered person will be informed of finding in form ADT-04. Opportunity of being heard is given to person, if officer intends to use material gathered during GST audit in any proceeding.

The proper officer may initiate proceeding u/s 73 or 74 on the basis of finding of special GST audit.

The content of the articles is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Internal Controls, Anti-Fraud Strategies for Companies in India

Internal Controls

Internal Controls


India is among the world’s fastest growing emerging markets, aided by liberal foreign investment policies and an expanding consumer base.

This has catapulted the number of market players and led to high levels of competition in each industry, often exposing firms to the threat of fraud and other risks.

A recent industry survey showed that in 2017, 89 percent of the companies based in India were victims of at least one instance of fraud; 33 percent of them suffered revenue losses of more than seven percent due to this.

Foreign investors expanding to the Indian market therefore need to prioritize conducting due diligence when entering into partnerships and contracts with firms and vendors in India.

Aside from the due diligence review, firms should pay key attention to daily compliance associated with financial reporting, security of company assets, floor operations, and inventory assessment, among other business activity records.

Fraud Prevention in India

Broadly speaking, fraud can be perpetrated by an individual or agency from within an organization or external to the organization. It falls under three main categories: asset misappropriation, fraudulent accounting and financial reporting, and corruption.

The three most common factors that determines a company’s exposure to fraud are incentives or pressures, opportunity, and rationalization.

To reduce their risk exposure, companies must put in place clear internal control mechanisms that can prevent, detect, and deter fraudulent behaviour conducted by employees, vendors, consultants, or various levels of management.

The Companies Act, 2013 first introduced the term ‘internal financial controls’ (IFC) in an effort to curb financial frauds in India. The Act directs companies to implement mechanisms that ensure the following:

  • Adherence to company’s policies;
  • Safeguard of its assets;
  • Prevention and detection of frauds and errors;
  • Accuracy and completeness of the firm’s accounting records; and,
  • Timely preparation of reliable financial information.

The Institute of Chartered Accountants of India (ICAI) issued an updated ‘Guidance Note on Audit of Internal Financial Controls over Financial Reporting or ICFR’ in September 2015, which mandates the involvement of an external auditor in the compliance process.

Several amendments to the Companies Act, 2013 focus on the prevention of fraudulent activities within a company, with explicit requirements for anti-fraud mechanisms for businesses varying by size and type of businesses.

The Companies (Amendment) Act, 2017 confers greater accountability to the directors and auditing professionals appointed by the business entity. It also makes directors and employees personally liable in case they are found guilty of committing fraudulent activities. The Act imposes financial penalties, and even imprisonment, in case of non-compliance.

Other Indian laws, such as the Prevention of Corruption (Amendment) Act, 2011, the Whistle blowers Protection Act, 2011, the Right to Information Act, 2005 (RTI), the Information Technology Act 2000 (IT Act), and the Prevention of Money Laundering Act, 2002 (PMLA) aim to protect companies from fraud.

Internal controls prevent, detect, and deter fraud

Aside from the financial loss, the experience of fraud devalues a company’s reputation & credibility & its performance in the market.

Preventing fraud thereby necessitates the implementation, monitoring, and periodic adjustment of risk management strategies and internal control systems.

Regulatory and legal recourse in India is still at the developmental stage, which puts the burden of fraud prevention on companies, and makes the implementation of internal controls a top priority.

Foreign companies with subsidiaries in India, often lack direct control over their firm’s day-to-day operations. Such entities must institute internal control and reporting mechanisms, ensure clarity of policy and penalty in the company handbook, and regularly follow up on any red flag issues.

Some important best practices for firms based in India are as follows:

  • Active assessment of risk factors and allegations by management and follow up on action taken;
  • Company behaviour and ethics code, which should be developed, documented, and communicated to employees;
  • Policy for whistle blowing, whereby management ensures the confidentiality and safety of information providers;
  • Proper compliance with laws and regulatory guidelines set up by the Indian government – such as the Whistle blowers Protection Act, 2011 or Prevention of Corruption Act, 1988;
  • Identifying key areas of focus particular to the relevant business model, to ensure efficient dedication of resources;
  • Focus on operational risks, such as asset misappropriations or bribery for supplier selection;
  • Transparency in accounting and financial reporting to prevent fraud or insider trading;
  • An audit committee that is independent of management, which must have knowledge of the company’s fraud risk exposure and steps taken by management to monitor and mitigate those risks;
  • Conducting company-wide fraud risk assessments to increase the visibility of management’s attitudes towards managing fraud risks and curbing individual rationalizations of fraudulent behavior; and,
  • Cooperation with police authorities. The Economic Offences Wing is set up under respective state police departments and is responsible for dealing with cheating and fraud cases in India. The EOW consists of a special committee of investigators, including finance professionals, and deals with cases of fraud amounting to US$440,000 (Rs 30 million) and upwards.

Below we discuss the most common instances of fraud, and how to curb them, at the floor management, middle management, and senior management levels.

Monitoring on-the-floor management – Stock, cash, data theft

Theft of physical assets is the most common type of fraud in most companies, especially in the manufacturing, trade, and retail sectors.

Senior management should look out for any discrepancy in inventory numbers, over ordering of products from suppliers, or large petty cash disbursements. Excessive write-offs or obsolete assets may also be an indicator of fraudulent activities.

On the other hand, protecting intangible assets, such as intellectual property rights and company data are of the utmost importance to companies.

Cyber-security officers should be appointed to prevent data breaches, and implement a system that automatically flags peculiar external communications or use of external storage devices on the company network.

Middle management – Bribery, corruption, procurement fraud

If managers are expected to entertain and dine suppliers or vice versa – a common business practice in India – a limited budget or proper reimbursement system should be in place, and policies related to this must be clearly defined in the company handbook.

Manager-supplier relations should be strictly professional, with limited influence over the procurement process by either party. Senior managers should flag discrepancies in quality, quantity, and price of products and audit all bills.

While the Prevention of Corruption Act, 1988, applies mostly to public sector employees in India, it has been used to prosecute corporate entities under certain provisions.

For example, using this Act, the federal agency, the Central Bureau of Investigation (CBI), recently booked the CEO of Air Asia for reportedly trying to manipulate government policy, using corrupt means, for business gain.

Additionally, companies may also adopt international best practices and conventions, such as the ISO standard PC278 or UK standard BS10500 to prevent corruption and bribery related fraud, provided they don’t run counter to India’s laws.

Upper management – Conflict of interest, financial fraud, insider trading

A conflict of interest occurs when a company’s employee is involved in related-party collaborations, rigging the supply system for personal gain.

The alleged ICICI-Videocon financial fraud, where a US$500 million loan was sanctioned by Chanda Kochhar, CEO of the Indian multinational bank ICICI, to manufacturing firm Videocon, which held a large stake in her husband’s firm NuPower Renewables, is a clear case of conflict of interest.

The subsequent writing off of the bank loans and its convoluted accounting trail has led to inquiries by the CBI – who are charged with assessing if this was a genuine loan or simply a case of financial fraud.

Other instances of financial fraud include when a company’s accounting statements are falsified to dupe investors and inflate the company value.

To prevent this from happening, company directors have to enforce the proper accounting and auditing of company books by qualified professionals who have no conflict of interest.

Insider trading is another common corporate offence – likely to happen in the higher rungs of management.

In this situation, individuals artificially inflate or deflate company stock by leaking confidential information into the market to manipulate share pricing.

Auditors and directors should beware of swinging share prices ahead of any major announcements, such as takeovers or bankruptcy; it could indicate a leak of information.

India Growth Report 2018



India continues to make progress with policy reforms and initiatives that are making India a place with unprecedented opportunities for global and domestic businesses.

India’s progress on the World Bank’s Ease of Doing Business rankings, to a rank of 100, progressing from 14201 just three years ago (2015), reflects a focus on this topic at the centre and the states. Building on bankruptcy reforms, major nonperforming assets situations were identified for resolution and actions moving forward. Foreign Direct Investment (FDI) was further liberalised. In 2016-17, FDI reached an all-time high of USD60.1 billion.

A stable macroeconomic environment is a precursor to growth. India has demonstrated a resolve to achieve fiscal consolidation, complemented with aggressive and not purely populist measures. Retail inflation averaged at 3.4 per cent for the April – January FY18 period, significantly lower than 4.5 per cent during the same period in FY17, and, while fiscal deficit for FY18 modestly increased to 3.5 per cent of Gross Domestic Product (GDP), attributed mainly to uncertainty over Goods and Services Tax (GST) collections, the government is committed to further lower it to 3.3 per cent in FY19. The government has also addressed the deterrents and roadblocks to the country’s potential to grow, with progressive policy reforms such as GST and the newly formed Insolvency and Bankruptcy Code (IBC).

In spite of some reformative steps that slowed the growth momentum in the first quarter of FY18, the economy is likely to grow at 7.4 percent in 2018, higher than the advanced economies and the world, i.e., 2 per cent and 3 per cent, respectively.
India has been recording the highest growth rate amongst the Brazil, Russia, India, China and South Africa (BRICS) economies. Buttressing India’s stability is its foreign exchange reserve of about USD420 billion.

Ease of doing business (EODB) is an area where concerted actions have led to important results. The government has adopted more than 7,000 initiatives to improve EODB in the country. As a result, India is now placed amongst the top-five countries that improved its ranking in the World Bank’s Doing Business 2018 Report and, for the first time was ranked in the top 100 economies.

India recorded improvements in 9 out of 10 indicators supported by major measures such as time-bound clearance of applications, de-licensing manufacturing of defence equipment, single-window clearance mechanism, reducing documents required for trade and introducing a single form for online return filing.

This should be recognised as just the beginning of India’s continued efforts to become one of the most investor friendly nations, as it continues to focus on progressing in areas such as trade across borders, enforcement of contracts, registration of property and starting a business to create a more enabling, participative and inviting economic ecosystem.

Improving ease of doing business is an important enabling factor for attracting investments.

Other aspects to advance investments are the promotion of new sectors for investments, skill enhancement and employability. These areas are intertwined and are of key importance to investors. These are being addressed through several central government schemes, which have been adopted by most states.
New regulations also play a key role. While the GST unifies the country’s tax regime, the IBC helps address the resolution of high levels of Non Performing Assets (NPAs) – USD128 billion across 38 listed public and private banks, which have been weighing down the banking system.

This report also highlights India’s efforts to be a digitised economy. A consequence of demonetisation, adopted in November 2016, was the significant thrust to digital transactions in the country. The volume of digital transactions has increased significantly, reaching a record level of 1.1 billion in December 201708. In addition, the cash-to-GDP ratio declined to 8.8 per cent as of FY17, registering a drop from 12.2 per cent in FY16, indicating increased formalisation of the economy.

This report also analyses the progress achieved under several national priority programmes. Skill India, a flagship initiative of the government, has been able to strengthen the ecosystem wit qualified individuals by way of increasing the number of Industrial Training Institutes (ITI) in the country and offering the total number of Qualification Packs (QPs) across sectors.

The setting up of State Skill Development Missions by states has advanced the upskilling of the country’s workforce.

Similarly, the Swachh Bharat Mission and Smart Cities Mission have gained momentum and are promoting administrative professionalism and citizen engagement. Other initiatives like Startup India and Make in India have made inroads into different sectors of the economy, helping states foster a culture of entrepreneurship and innovation.

Sound infrastructure is important for business. Many steps have been taken to address port development and connectivity issues to make India a global logistics centre. The coastal shipping sector in India currently contributes to merely 6 per cent of the entire coastal and inland waterway freight movement. Plans are underway to double this share by 2025.

An area of significant progress has been roads, the lifeline of the country, where significant projects are being accomplished through public private partnership (PPP) models.

This sector has been opened up for 100 per cent FDI under the automatic approval route, subject to applicable laws and regulations.

Bharatmala is envisaged as a programme to develop 34,800 km of roads in its first phase, along the lines of Sagarmala which is a connectivity initiative in the ports and shipping sector. The Railway Budget in 2017 was consolidated with the Union Budget and the government earmarked a historic budget outlay to reshape Indian railways and allied sectors. With the growing need and importance of alternate sources of energy, the government has taken a series of initiatives, especially in the renewable energy (RE) sector paving the way for a host of investment opportunities in this growing sector as detailed in this report.

A majority of the industrial activity happens in the Micro, Small and Medium Enterprises (MSMEs) sector. Indian MSMEs, with approximately 63 million units, contribute 8 per cent to national GDP, employ over 111 million people and manufacture over 6,000 products.

The government intends to enhance the manufacturing sector’s contribution to 25 percent of GDP. Hence, several central government schemes are made to benefit this sector directly. Key steps have been taken by the government for this sector including reduction of the income tax rate of 25 per cent for MSME companies having a turnover of upto USD38.65 million and Minimum Alternate Tax credit carry forward extended to 15 years from 10 years.

Looking ahead, the promise of the many government initiatives mentioned must be realised through rigorous monitoring of these programmes.

India still needs to take further steps to restructure its trade and FDI regime. The country needs to be even more responsive and flexible to address global investors’ requirements.

It is now imperative that a fine balance be struck between the need to push public investment on the one hand and keep the fiscal deficit under check on the other.

Consumer spending could get a boost with a wise mix of public spending and other fiscal reforms to spur demand in the nation. The government will need to facilitate increased exports and further streamline the GST ecosystem.

Reforms are vital for sustainable growth. The Indian economy is moving in the right direction with initiatives taken towards stepping up infrastructure investment, land and labour market reforms and measures to boost manufacturing growth.

While all these can still be classified as an ‘unfinished agenda’, a significant volume of work has already been undertaken towards the completion of these tasks, in terms of a conducive policy environment as well as on the ground effort.

A combination of supportive global growth, improving capex, fiscal spending, a buoyant consumer and concerted policy efforts augur well for a stronger growth outlook for the Indian economy over the short to medium term.

India is marching ahead and setting examples for not just the developing economies but also for developed ones. India has many successes to be proud of – ranging from the Aadhaar programme extending unique identification to 1.14 billion individuals in 2017 to policy measures that provide an impetus to entrepreneurship.

Areas of focus and progress are varied and include simplification of taxes, focus on improving ease of doing business, right to information, universal education, food security, sanitation, rural employment
and governance and transparency.

A Good News For NRI(s), About Taxation : By AAR.



You work hard day and night to earn good enough to attain a healthy and comfortable life style for yourself and your family. As being part of civilized society you also pay part of your income to government as Taxes. Well most of people think why even we pay taxes to government, which sounds pretty fair and natural question that arise in our head. Most people found that only reason to pay taxes is to avoid the legal action that can be taken against you for non-payment of taxes; But this is not the only reason to pay tax. Actually taxes are very important for the survival and growth of any nation. All the facilities that government provides, like education, health, infrastructure, other developments and especially defense of our nation rely on these taxes heavily. So Taxes are very important.

Now comes an another question how much and what taxes are to be called fair one? and which sound as the unfair ? Well we are in bit of luck that we live in free and democratic nation and our governments keep working on revising the taxation system and process time to time. And one such relief is provided to Non- Residential Indians ( NRIs) by AAR , so that they can save their money to be charged by double tax.

What is AAR ?
Before going in details about the new relief to NRIs let us understand what is AAR and its role in world of taxes. AAR stands for The Authority for Advance Rulings is a government body which takes important decisions regarding tax matters. It has responsibilities to provide the facilities of ascertaining the income tax liabilities of Non- Residential Indians (NRIs) and other special categories of residents. This body is run and managed by the chairman who is retired judge of supreme court and two other officials who are of rank of Additional Secretary to the govt. of India.

A Relief to NRIs by AAR.
According to the new ruling by AAR, the salary income of non- residents for the service they rendered overseas shouldn’t be taxed in India even when paid into bank account in India. Well its surely a relief to such NRIs as it save them from paying double tax on same income one in abroad and one in India. Let’s take a look on important points of this ruling:

  • As per the domestic tax law, which states that, ‘ tax could be charge on any income once, means and income which is been charged with tax already cannot be charged with tax again.’ So the NRIs who render their service overseas are being taxed on income on their respective country so their salary won’t be taxable in India.
  • Indian Residents are liable to pay tax on their global income irrespective of that where it is earned. And in case of NRIs the only income which they acquires here ( means in domestic region) like rent from the property in India or interests on investments/Bank savings is liable to taxes in India.
  • According to the India-US tax treaty, it’s the place where the employee perform his/her duties and not where the income is received. AAR also held that where there is no Tax- treaty, this ruling come in role as per the Domestic Tax Laws.

Well this is certainly a big relief to many NRIs, who move out to look for better opportunities and provide a better lifestyle for their family and themselves. For More detail about taxation and other accounting /management help contact SP Chopra & Co.

Responsibilities to be Handle with Care: Routine Compliances Matters

Routine Compliances

Routine Compliances

Starting a Business in 21st century is way easy, then actually running it in this competitive world. Loads of responsibilities and obstacles breaks heart and soul of many business personality during their journey. Survival is the first step of success as most of the firms are not even able to survive for short periods like 2-3 years. In such environment of competition maintaining data, records and managing compliances is the biggest task that every firm have to deal with. Here you need experts and professionals like SP Chopra & Co. to take care of your belongings more professionally and with great responsibility.

What is Routine Compliance Matters?
There are lots of matters which are to be taken care of while running of business. Many of those are of unproductive nature but are very important for smooth functioning of the firm. Routine Compliance Matters are mostly which have to be taken care of timely and with great care. These are essential documentation and set ups which are to be done and maintain properly time to time. So better give these responsibilities in hands of capable professionals like SP Chopra & Co. so that you can focus on the core functions of your business enterprise without any worry. Let’s see what SP Chopra offers you in this service :

• Convening, Holding and Drafting of the minutes of Directors and Extraordinary General meetings : Managing the minutes of director and holding up the General meeting is not that easy as it sounds; as one have to go through a proper procedure and documentation which consumes part of important and productive time so, if it’s been handle by some professionals then it sounds great for the smooth functioning of the firm isn’t it ?

• Constitutional Changes: It includes changes in name of the company, registered address, place of business , objects of business, financial year, increase/decrease of registered share capitals and so many more which SP Chopra & Co. will manage for you.

• Changes in Company’s Management: It refers to changes that happens in directors means their removal, resignations or appointment.

• Company incorporation and branches establishments, including Corporate documents for various uses: This includes all the paper work/documentations and certain formalities regarding establishment of branches and incorporation of the firm.

• Voluntary liquidations and deletions of companies and place of business: This means the procedure and formalities related to deletion or liquidation of companies and place of business.

• Simple (inner groups) share transfers, share issues: This includes procedure while transferring or issuing of shares among the inner groups of the firm like directors and so on.

Well SP Chopra & Co. have a lot to offers and this is just small overview on Routine Compliance Matters. Let SP Chopra & Co. reduce your loads of responsibilities so that you can focus on the core functioning of your business carefree.

Steps which are not meant to Skip: Periodic Compliances

Periodic Compliances

Periodic Compliances

Running a business in today’s World is not a joke. There are lots of things to be taken care of while running a business of any size. The bigger the size of the business, greater the responsibilities.  Keeping the record and maintaining the necessary documentation is actually the bigger responsibilities these days then running the productive operations. Thus Periodic Compliances comes as in greater role for any business organization.

What is Periodic Compliance?
Generally Compliance means keeping up with the set rules, policies, law or standard; and Periodic means timely or we can in a regular interval, like monthly, quarterly and so on. Thus Periodic Compliances mainly refers to recording, maintaining, filing or submitting the necessary documents and informative data timely or in regular intervals.

S P Chopra & Co. Provides complete Solutions for Periodic Compliances. Being a Reputed and one of the India’s top CA firm, SP Chopra Company provides you the best solutions for all these important aspects of your business, for the smooth functioning. SP Chopra & Co. Now as big load of responsibilities would be taken care by reputed professional one can focus on the core functioning without any worry. Let’s see what are the major Compliances to be taken care of:

Permanent Account Number/ Tax Deduction and Collection Account Number (PAN/TAN). These are some important identification number for any business firm which are require for the taxation purpose and legalizing the existence of the firm.

GST ( Good & Services Tax)
GST is the new revolution in taxation in India, basically an indirect tax which has replaced many other indirect taxes, in order to simplify taxation system ease the functioning and tax valuation for the business individuals and organizations.

Income Tax Calculation
This is one of the most important part of these compliances, and every business firm or business individual has to keep up with to avoid any sort legal issues which might risk the working of the firm. It involves a detailed calculation keeping in mind the various activities and transactions.

TDS Compliances
Tax Deducted at source ( TDS) is one of the well known mode of collecting income tax at the very source of income itself. In this basically the firm pays the part of income tax of their employees on their behalf, and that’s also been mention on their salary slab and statement. So firm have to keep the track of this to make it work properly and systematically.

E-Filing of Income Tax return
It’s basically means Filing of Income Tax return via internet, through e-forms, in which one have to fill the necessary details accurately.

Tax Planning
Tax Planning basically refers to analyzing financial situation of business firm of individual from tax point of view. It’s done to ensure the tax efficiency and make effective financial plan.

Tax Audit
Tax Audit is means review or examining the books of accounts of business organization or individuals for the purpose of computation of income and tax and helps in filing the returns.

Tax calculation for small Retails & Trading business
SP Chopra & Co. also take care of the tax valuation and other needs for the small Retails & Trading business.

Advance Tax
In simple words as the name suggest itself Advance tax means paying tax in advance. It can be done by estimating the taxable income for the relevant year and paying it in equal parts throughout the year instead of paying whole at the end.

Transfer Pricing
It is basically refers to the value attached to the goods and services being transfer between the related business entities.

Minimum Alternate Tax (MAT)
MAT or Minimum Alternate Tax is actually for business firm to make them pay minimum Income tax.

Filing Tax Returns
It’s the form which is meant to be filled properly and submit it by time. It declares the actual taxable income, deductions and tax payments. to ensure the proper valuation of tax.

There are many more Compliances which SP Chopra & Co. can take care like:
• Income Tax  Calculation as per Income Computation Disclosure Standards  (ICDS).
• Certification of Tax Compliances ( Form 15CA / Form 15CB ).
• Advising on Taxability of Foreign Remittances and receipts.
• VAT / Sale Tax.
• Service Tax.
• Excise.
• Custom.

SP Chopra & Co. is one stop solution for all such Compliances which are to be taken care of periodically. Let them Handle your load of responsibilities with professional gesture and attitude and leave the worry out of your way to success. SP Chopra & Co. will handle all your Periodic Compliances timely and professionally.

International Association between PrimeGlobal and SP Chopra & Co

International Association between PrimeGlobal and SP Chopra & Co

International Association between PrimeGlobal and SP Chopra & Co

In a global business environment, finding an accountant firm with strong technical skills in audit, taxation, and consulting services is not enough. You will be required to need an advisor with the ability to do business almost anywhere – in almost any kind of business you can think of.

When you use a PrimeGlobal firm, suddenly you are working with an international, multidimensional powerhouse. PrimeGlobal independent member firm know and care about each other – which makes them masters of the seamless transition. You get the best of all possible in this worlds.

PrimeGlobal, Founded in 1977 and 1978 is the third largest association of independent accounting firms in the world; as of June 2013, the association was comprised of over 320 highly successful independent public accounting firms in 87 countries.

SP Chopra & Co (An ISO 9001:2015 & 14001:2015) is a global Chartered Accountant firm with 65 years of establishment, an independent member firm of PrimeGlobal, a worldwide association of independent Chartered accounting firms and business advisors.

SP Chopra’s main office is located at the district of the nation’s capital in India, Connaught Place and we have our branch offices in several cities in India and our international offices are located in Canada and Dubai seperatly.

PrimeGlobal member firms offer a powerful range of services and industry expertise to meet your needs – around the globe, around the clock. If you seeking accounting services such as tax advice or tax preparation, audit or internal audit services, corporate finance advisory, wealth management advisory, or any other service provided by a public accounting firm, SP Chopra & Co encourage you to review our site and learn more about the company and the services we offer.

SP Chopra Offers to our clients various services included: (All services will be hyper linked)

Statutory Audit including Reporting on Internal Financial Control (IFC),

Management and Internal Audit, IFRS Convergence and Reporting, Transaction support, Valuations, Due Diligence, Post Investment, Cash burn audit for Investors, Standard operation procedures (SOPS), Formation of an appropriate business, Obtaining Registration, Periodic Compliances, Assessment of Statutory Compliances, Tax Compliances, Routine Compliances Matters etc.

Disclaimer: “S.P. Chopra & Co. is an independent member firm of PrimeGlobal, a worldwide association of independent accounting firms and business advisors. PrimeGlobal does not and cannot offer any professional services to clients. Each independent member of PrimeGlobal is a separate firm and an independent legal entity. PrimeGlobal is not a partnership and independent member firms are not acting as agents of PrimeGlobal or other independent member firms.”

SP Chopra & Co

Assurance | Tax | Advisory
Doing Business in INDIAISO 9001:2015 & 14001:2015

Doing business in India

doing business in India

doing business in India

Doing business in India – the fastest growing economy in the world, the second-most popular country with over 1.33 billion people, the world’s largest democracy and the seventh-largest country by area.

World Bank Report on Ease Of Doing Business In India – the Indian economy will grow at 7.6 % in 2016-17, followed by further acceleration to 7.7 % in 2017-18 and 7.9 % in 2018-19. The new visionary political leadership, favorable demographics with over 50% of the population below the age of 24 years and 65% of the population below the age of 35 years and large educated workforce have further fueled this growth.

Doing business in India offers numerous opportunities for UAE, Canada, Australia companies. It should not be seen as one market, but a series of interconnected regional markets where the legislative and investment climate may change from one state to another.

SP Chopra would advised to obtain the current and detailed information from our experienced professionals for the companies are doing business in India, or have plan to do so. Countries may be UAE, Canada, Australia etc – large or small.

 SP Chopra guide will help you in doing business in India.

The key areas to consider are understanding the market, Doing Business in India serves as a guide to India’s business:

Specific Tax Concerns Related to Establishing a Company

Legal Issues Related to Establishing a Company in India

Cultural Concerns Related to Establishing A Company in India

Other Country-Specific Issues Related to Establishing A Company in India

Permanent Establishment in India | Branch or Subsidiary?

Tax And Accounting Obligations in India

Registration Formalities in India

Standard Legal Obligations and Formalities for a Branch in India

How to Hire My First Employee in India?

Design and Contents of an Employment Contract in India

Can Somebody do Business for Me and not be an Employee in India?

To facilitate the ‘Ease of Doing Business in India’, the Indian Government has taken significant measures on the taxation and the legal fronts by launching other initiatives like ‘Make in India’ and ‘Digital India.’

The Indian government has also taken up a series of measures to improve the ease of doing business in India by simplifying and rationalizing existing rules and using information technology to make the governance more efficient and effective.

India is set to climb up in Ease of doing business:

“I leave India with a profound admiration for the remarkable development gains this country has achieved in recent decades. India’s experience holds valuable lessons for the World Bank Group and for countries around the world”

Jim Yong Kim, World Bank Group President March 2013.

“The fundamentals of our country are very brilliant and I don’t see any reason why the great Indian story has lost so fast its sheen and the reason for the pessimism”

Indra Nooyi, Chairperson and Chief Executive, Pepsico, November 2013

“It is important to take a moment to remind ourselves of this country’s extraordinary achievements. Some are well known in the world at large — the emergence of a world-class IT industry, the rapid growth of exports and the development of a sophisticated financial sector. India has a strong voice in the global discussion of many key issues, including trade and climate change … These successes highlight the gradual process of reform India has undergone during these years of rapid growth. Regulatory changes have been significant… From abroad, India fits comfortably into the category of countries that  are doing well. Its growth is strong by advanced country standards …”

Naoyuki Shinohara, Deputy Managing Director, International Monetary Fund May 2013.

“Despite the current downturn, long-term prospects remain bright for India. India possesses the fundamentals to grow at sustained high rates over the next several decades”

Martin Rama, World Bank’s Chief Economist for the South Asia region April 2013.

“India’s biggest strength in the coming years is going to be her demographic dividend. More than 50% of our population is under 25 years and soon, one-fifth of the worlds working age population will be in our country”

Pranab Mukherjee, President of India while receiving the National Innovation Council’s Report to the People 2013 in November 2013.

“In the past two decades, the rate of growth more than doubled to an average rate of over 7% per annum and the Indian economy was put on an upward growth trajectory. Naturally, there will be periods of ups and downs. The economic cycle presents us years of high performance and years of modest performance. But the important thing to note is that highs are getting higher, and so are the lows”

Dr. Manmohan Singh, Prime Minister, India, at his address at the Hindustan Times Summit, 2013 in December 2013.

“India is already adding more than China to the world’s working-age population. Although this increment will lessen in the coming decades, India’s share of the global workforce will climb towards 30% by 2030 …”

Standard Chartered,  6 November 2013.

“FDI flows into India are Quite positive… think we can absorb – easily absorb – US $50b of FDI every year into India.

P. Chidambaram, Finance Minister, India April 2013.

Fundamental are still better than people believe, People are caught up in all the doom and gloom that surrounds India at the moment. But if we take a step back and do think about those fundamentals, then it seems to me that there are good reasons to believe that growth will be stronger in this current fiscal year than the last fiscal year. Fiscal policy, monsoon and the exchange rate are clearly more helpful”

–  Robert Prior-Wandesforde, Director, Asian Economics Research, Credit Suisse, September 2013.

Can Somebody do Business for Me and not be an Employee? – Doing Business in India

Doing Business in INDIA, Establishing Company in India, Uncategorized, Agent to Foreign Entity in India, Consultant in India, Contractual Worker in India, Outsourced Workers in India, Outsourcing of Services in India

Can Somebody do Business for Me and not be an Employee in India? – Doing Business in India

Yes, it is permitted in India for a person to work an entity and not being employee. These are the ways a person can be hired to work:

  1. Consultant / Contractual Worker: A person can be engaged directly act as a consultant or contractual worker for an organization without being an employee. Here liability for withholding taxes shall trigger above a particular threshold.
  2. As an Agent to Foreign Entity: A person can work as an agent of foreign entity. An agent does all acts on behalf of the principal, and the principal is bound by the acts of agent for which an authority is granted to the agent.
  3. Outsourced Workers: An entity can hire a manpower supply agency, which in turn will select workers based on requirement of entity and engage them with the business entity. These workers work under control and supervision of the business entity. Normally all the statutory compliances in this regard are taken care by the manpower supply agency; failing that, the entity shall be liable. Here the entity is responsible for the supervision and direction of such workers.
  4. Outsourcing of Services: Many services can be outsourced or done by freelancers. This work may include accounting, manufacturing, website design, marketing ,and public relations. Here the work responsibility also lies with the outsourced agency.

Design and Contents of an Employment Contract | Doing Business in India

Doing Business in INDIA, Establishing Company in India, Employment Contract in India

Design and Contents of an Employment Contract – Doing Business in India

The Employment contract is generally quite flexible and is made to cover the needs of an entity. It will generally cover the following salient features:

  1. Period of employment
  2. Areas of work and reporting responsibility
  3. Work location and working hours per week
  4. Compensation
  5. Vacation and leaves
  6. Compliance with Company Policies and Laws
  7. Confidentiality
  8. Non compete clause
  9. Termination and Notice period