Major changes announced on 23rd GST council meeting

On 23rd meeting of GST council Finance minister Arun Jaitley announced some major changes in tax rates which provide some relief to tax payers.
GST council also reduced GST tax rates for service sector (Restaurant, Handicraft & Aviation) to simplify taxation process and promote ease of doing business.

Relaxation for Service Providers:

Service providers within Rs.20 Lakh turnover are free from GST registration. This is also applicable on those who provide inter-state services and through any e-commerce portal.

There is no good news from this 23rd meeting for restaurants. Restaurants can’t avail any input tax credit with remaining tax rate of 5%.

Services export to Nepal and Bhutan are exempt from GST charges also they can avail input tax credit facility. Continue reading “Major changes announced on 23rd GST council meeting”

Step-by-step guide on GST Registration

GST marked as the biggest tax reforms in India since 1947. It’s a unified tax implemented by current BJP Government with an aim to erase all state or central government indirect taxes. GST subsumes 11 Indirect taxes that were levied on the sale of goods and services by central or state Government. GST made indirect taxation process simpler for small and medium scale enterprises. It will also boost economic growth in a long run. New small businesses will be benefited from this new tax law as they have to pay less tax under composition scheme (SMEs with Rs.20 – Rs.50Lakh turnover).

As we are saying that GST made taxation easier. So, let’s have a look at its registration process. In this article we will cover all details regarding GST registration with below-mentioned points:

Continue reading “Step-by-step guide on GST Registration”

Revised GST – Why it’s a best Diwali gift for traders?

Since its implementation on 1st July, 2017 GST has been always in the news due to its high tax rates & bit complicated tax slabs also Govt faces lots of criticism for it.

Recently RBI forecast GDP growth rate at 7.3% (2017-18), which is lower than last year’s GDP growth rate. To main economic stability and for a higher GDP growth Government decided to revise tax rates.

On 6th October Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.
The GST council slashed rates on 27 items and 12 services.

Here are the details of revised tax rates on goods:

Continue reading “Revised GST – Why it’s a best Diwali gift for traders?”

GST Council trims tax rates to ease the filing process

GST Rate revised

Since its implementation on 1st July, 2017 GST has been always in the news due to its high tax rates & bit complicated tax slabs also Govt faces lots of criticism for it.

Recently RBI forecast GDP growth rate at 7.3% (2017-18), which is lower than last year’s GDP growth rate. To main economic stability and for a higher GDP growth Government decided to revise tax rates.

On Friday Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.

Continue reading “GST Council trims tax rates to ease the filing process”

What is Capital?

Capital is the total financial asset of a business. It includes cash-in-hand, cash-at-bank, building, furniture, machinery, land etc. Capital is categorized into two different types i.e. working capital, fixed capital.

Working Capital: Those assets or capital used or available for day-to-day operations are called as working capital.

To calculate working capital: working capital = current assets – current liabilities

Fixed Capital: Capital or assets like furniture, machinery is termed as fixed capital. Fixed capital is the biggest advantage for a business as these can be used in bad times to pay debts.

What is Ledger?

Ledger is a collection of different accounts like sales, purchase, income, expense etc. Every transaction should be placed in their respective ledger.
Ledger includes few accounts like assets, liabilities, income and expense, account receivable, accounts payable etc.

Here is an example:

What is a journal?

Journal:

In Journal all first transactions are recorded with specific date then these entries categorized into different accounts like sales, purchase etc. in a book called Ledger. In manual accounting all these entries need to be done manually but in accounting software respective ledger automatically created at the same time when we enter data in Journal.

Journal is of two types: single entry and double entry. In double entry each entry needs followed up with two accounts. This is another and detail form of journal entry.
Here is the Journal entry format:

Example:

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What’s accounting? Accounting terminologies

Accounting is the backbone of every business. Its very necessary for start-ups’ to have a clear and detail knowledge on all accounting terms to manage business finances easily also to have a better talk with investors. In this series we have compiled a list of basic accounting terms and its details to provide our users a better and in-depth knowledge on accounting.

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Accounting: Accounting is a way of keeping record of all financial transactions followed by summarization and analysis in the form of a book. Accounting also called as book keeping. It shows the financial health of a business which in turn will help the business owner to take better decisions for growth of the business.

Accounting provides detail information on available stock, budget, cash flow status, profit & loss status etc.

Recently companies are using cloud accounting softwares for easy and error free accounting. Also this is the best way to save time and money on accounting.

Accounting cycle:

Accounting Example:

 

This is just an example how entry items in a account using an online accounting software.