Friday, April 22, 2016

55 Biggest Career Mistakes of our Life:

55 Biggest Career Mistakes of our Life:
1. Assuming that you know everything
2. Forgetting to network
3. Not being prepared for meetings
4. Ignoring the value of business cards
5. Engaging in office drama
6. Arriving to meetings late
7. Not asking for more work when you’re bored
8. Being satisfied doing the minimum amount of work necessary
9. Not sharing your career goals with your leader
10. Not reading up on your industry
11. Forgetting to make a LinkedIn page
12. Over-sharing personal stories at work
13. Burning bridges when leaving a job
14. Dressing unprofessionally
15. Not proof-reading your e-mails
16. Believing that you’re going to be a VP right out of college
17. Not seeing the value in entry-level positions
18. Not learning from your mistakes and failures
19. Failing to seek out a mentor
20. Thinking that once you choose a job field, you’re stuck with it forever
21. Not having an updated resume available at all times
22. Failing to join associations and groups pertaining to your industry
23. Being a negative person
24. Not taking initiative and turning down all new projects
25. Forgetting to thank people who help you
26. Not asking for help when you need it
27. Failing to admit that you’re overwhelmed with your workload
28. Trying to convince yourself that you love your job when you don’t
29. Overestimating your abilities and not being honest about them
30. Turning down training courses
31. Not keeping track of all your accomplishments
32. Making career decisions for anyone other than yourself
33. Not actively looking for a job when you’re not happy with the one you have
34. Thinking that it’s too late in life to change careers
35. Making premature judgements of others
36. Over-promising results, and then failing to deliver
37. Not having a system for managing e-mails
38. Failing to understand when and how you’re most productive
39. Assuming that everyone around you thinks the same way you do
40. Failing to accept diversity as an asset to your team
41. Not caring how your actions affect other people
42. Having an emotional IQ of zero
43. Being scared to ask questions
44. Making decisions that impact others without consulting with them first
45. Believing that you need to be an a-hole to be taken seriously
46. Taking jobs just for the money
47. Not sharing your knowledge with others
48. Letting your ego guide your decisions
49. Not thinking big-picture
50. Complaining about problems instead of offering solutions
51. Failing to embrace change
52. Being intimidated by new technology
53. Not pushing yourself outside of your comfort zone
54. Not giving yourself time to re-charge
55. Not standing up for what you’re worth

Friday, November 6, 2015

What success can an Accounting & Tax consultant bring in to an organization and how relevant is its role?

The era has come in which accounting and tax consulting has become one of the key success factor of any organization. In the late 90s, the India industry started to realize the importance to an accountant and tax consultant. The Industry realized that efficient accounting will always help in cost control and tapping the leakages. Accounting is merely not about recording of transaction for reporting to the authorities, but it is more about accountability of each and every person of the organization.

The accounting and tax consulting has been becoming more and more relevant day by day due to various reasons summarized below :-
1.       New Business products and services evolved in which there are numerous complicated transactions.
2.       Enactment of multiple and complex tax policies, such as a small size manufacturer has to deal with many taxes such as Income Tax, Excise, VAT, Customs, Octroi/LBT which makes it virtually impossible to deal with for a general accountant and here comes the role of accounting and tax consultant.
3.       Large scale of transactions.
4.       With evolvement of computers in governance, any misreporting is caught immediately thus the need of the expert is the need of the hour.

I am a finance and tax consultant and I would like to give you a real life example. My client took over a company which was engaged into real estate business and it had one project going on. The old owners were very conservative and hence did not hire an expert consultant and relied on a general accountant, supposed to be graduate, for all its accounting, tax filings etc. When my client took over the company, he called me for review of books of accounts, tax papers & financials which were being handed over. While going through I discovered that the previous accountant has not availed credit of service tax for services used in development of real estate project, which is legally allowed. Thus, that all unavailed credit was lost and became a cost for the client which was actually not. According to my estimate he suffered a loss of not less than 20 lacs due to that error, which cannot be corrected now as the time limits for revision of filings were expired way back. The total cost of the project was around 10 crores, and 20 lacs in this was a very huge amount.

Thus all I wanted to tell you that a small observation of an expert will help you save millions. We all agree that the financial planning, analysis and management is the most important tool for success for any business. And it all starts with accounting.

Let’s take example of World’s largest conglomerate – The Tatas. The group has more than 100 registered companies and they have managed the shareholding so neatly that it would take you months to understand the shareholding network of Tata Companies and after months also you will not be sure that whether you have arrived at correct figures or not. All you can do is rely of the figures given by them. This saves them a lot of cost and get rid of many obstacles. This is what an good consultant will get you.

I simply believe that for earning something, you need to decide the correct selling price and for deciding the correct selling price you need to know your correct costs, which all comes through the accounting process.

Even the taxation policies in India are not so consistent and are very ambiguous. The role of the consultant is also very vital due to a number of tax laws, multiple possible interpretations etc.


Summarizing the all above I would like to say that a good accounting and tax consultant will bring success to any organization by way to proper financial management, tax management, cost reduction, proactive steps for any threats and much more.

Monday, June 15, 2015

IFRS 9 (Ind AS 109) - India first country to mandatorily early converge!!


Image result for companies rules

Abstract of the Ministry of Corporate Affairs (MCA) Notification - Companies (Indian Accounting Standards) Rules, 2015 

Effective from: 1-April-2015




Obligation to comply with Indian Accounting Standards (Ind AS)
  1. The Companies and their auditors shall comply with the Indian Accounting Standards (Ind AS) specified in Annexure (39 standards in total) to these rules in preparation of their financial statements and audit respectively, in the following manner, namely:- 
    • any company may comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1st April, 2015, with the comparatives for the periods ending on 31st March, 2015, or thereafter; 

    • the following companies shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2016, with the comparatives for the periods ending on 31st March, 2016, or thereafter, namely:- 
      a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of rupees five hundred crore or more; 
      b) companies other than those covered by sub-clause (a) and having net worth of Rupees five hundred crore or more;
      c) holding, subsidiary, joint venture or associate companies of companies covered by sub-clause (a) and sub-clause (b) as the case may be; and 

    • the following companies shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1 st April, 2017, with the comparatives for the periods ending on 31st March, 2017, or thereafter, namely:-
      a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of less than Rupees five hundred crore;
      b) Unlisted companies having net worth of Rupees two hundred and fifty crore or more but less than rupees five hundred crore;
      c) holding, subsidiary, joint venture or associate companies of companies covered under sub-clause (a) and sub-clause (b), as the case may be.

“Comparatives” shall mean comparative figures for the preceding accounting period. 

For the purposes of calculation of net worth of companies, the following principles shall apply, namely:- 
the net worth shall be calculated in accordance with the stand-alone financial statements of the company as on 31st March, 2014 or the first audited financial statements for accounting period which ends after that date; 

Standards in Annexure to the rules once required to be complied with in accordance with these rules, shall apply to both stand-alone financial statements and consolidated financial statements.

Exemptions 
  • The insurance companies, banking companies and non-banking finance companies shall not be required to apply Indian Accounting Standards (Ind AS) for preparation of their financial statements either voluntarily or mandatorily.

Thursday, May 21, 2015

Business Success Through Jain Thinking

We often hear people tell us that if a person wants something baldy enough, that he/she can achieve it. However motivation and ambition are not the only factors that attribute to a person’s success, the path chosen to reach a person’s goals remain vital also. Sometimes people have honorable goals but fail to recognize that an honorable course carries the same importance. Many times people either lack the confidence or enthusiasm to reach for their dreams, or the clarity of thought and mind to realize them effectively and ethically. To put it bluntly, the world is a tough place, and having the ability to follow one’s principles can be elusive. In spite of this anyone can turn their dreams into a reality and keep their Jain principles alive and very much a part of their actions. I will explain my views on how a person can accomplish this by discussing my background and experiences, and then relating them to the current and future environments of business.

Every since I discovered the world of music, I knew that I wanted to become an important part of it. However making this happen did not come easily, for it required a lot of hard work, dedication, and sacrifice. The dedication and passion came easily, because music spoke to me on an intimate level like nothing else could. In 1992 I discovered the world of tracking. Possibly the first music community on the Internet, the tracking scene exists as a place where a passion for music (from its production to listening to it) combined to form a devoted group of people who use computers to compose music. One day I had just completed a new song, of which I was extremely proud, and I submitted it to a music site for their acceptance. Unfortunately other people did not agree that my music was great, and they quickly removed the song and me from their site—after all they accepted only talented artists. I did not realize it at the time, but this moment proved to become a turning point in my life. From their rejection I drew energy and the conviction to help other artists like myself—I wanted to create a haven where new, unproven artists could go to learn, grow, and enjoy the gift of music. So in 1993, I founded the CyberLegion Artist's Network, a large group of computer artists and tracker musicians who used Bulletin Board Systems as medium for distribution and marketing. Then in 1995, I continued my work in the tracking community by founding Nebula Music Works, a tracker group that released the First Contact CD (1996) and performed at the Philadelphia Music Conference in 1997. Soon thereafter I successfully evolved Trax In Space (TiS) from Nebula Music Works and launched the site in 1996. Through my expertise and in-depth experience in the tracking scene, I quickly grew the site, releasing Interstellar Harmony: Volume One in 1999, and Interstellar Harmony: Volume II in 2000, and finally incorporating the company in 1999. Today TiS is an online music community dedicated to promoting, educating, and inspiring musicians in the digital music scene. It serves as both a community for promoting artists and a center for distributing artists’ music. The TiS site offers thousands of songs for visitors, available to them for free downloading. TiS brings the digital music community together through a variety of events and features: chat rooms and forums, themed Compos (music competitions), reviews, e-commerce, and the digital distribution of music. An important part of Trax In Space is its unique subculture derived from the Tracking scene (possibly the Net’s first music community). Years after its conception, TiS is now the largest, most visited tracking site on the Web, bringing its distinctive artist-first attitude to hundreds of thousands of visitors a month. Trax In Space represents the fusion of music, people, and culture of the tracking music scene and the realization of my vision.

With the success of the site and my becoming a key figure in the tracking world came many responsibilities to the tracking scene, the company, and myself. Often what was best for one group was not the best for another, and choosing the right path had its difficulties. The temptation to select the quickest and easiest route sometimes came close to conquering the need to maintain my beliefs and integrity. Greed is a nasty creature, and the call of this Siren pleases the ear, but as a Jain I am equipped with the knowledge and weapons to fight this monster. Of course the ability to abuse my status and power could just have easily have dictated my actions. Achieving success does not come without its evils, and I have experienced many days where the pressure of keeping my principles seemed too great. Fortunately I have always fervently espoused a people-first attitude, in which I strongly convey that ethics should remain a key factor behind all decisions. I want to help people. As a Jain my life demands this, as a human I crave this. I illustrate my thoughts by being an ethical leader, using myself as a row model for others in the tracking scene and the employees in my company. I believe that motivating others to absorb ethics into their lifestyle would help the company grow on multiple levels and not just the pocketbook. From writing papers discussing the discrimination of women in the tracking scene to speaking about ethics and people to others, I have avidly tried to show that Jainism should be very much a part of business. To me Jainism depicts more than a mere set of thoughts and rules, it presents an ancient, yet new, way of thinking that can lead to personal, corporate, and social success. Now that you know more about who I am, my business, and the role of Jainism in my life, let me explain how anyone can apply the concept on Jainism and success to his/her life.

Today the business world thrives as a combination of vice, ambition, passion, and of course, money. Not all of it is bad. In my opinion, most businesses attempt to encourage an ethical and fair practice. However I am more concerned about that smaller part that entices people with its promise of power, fame, money, and success. All of us have heard the term “ethics,” but how many of us actually understand it? Moreover how many of us actively make it a part of our decision making? Ethics is a set of principles of right conduct. It transcends the ideas of law and religion because it remains unique for each person. I cannot decide whether a course or action is ethical for you, only you can decide for yourself the ethics of a situation. Furthermore ethical dilemmas present themselves when making a decision is not easy and no clear choice exists. For instance, your business is losing money and might soon go under. You can save money by dumping your waste in a local landfill instead of properly (and expensively) disposing of it. Trashing the waste in the local landfill is legal, but you know that it can have an astounding environmental impact. What do you do? This example shows just of one of the many ethical dilemmas each one of us will face during our lifetimes, whether it surfaces on a social, personal, or business level. In the last illustration, your goal is to stay profitable but also be conscious of the environment—you have no clear answer. Thankfully I think that our world is changing for the better. Currently the paradigm for business and thought moves toward one that includes people and the environment on an [almost] equal plane as money. We still remain far from this, but every day brings us a little bit closer to this. One day ethical decisions will have an immensely critical role in business, because the careful consideration for factors (such as the environment in the last example) will be valued by people and rewarded in business. For instance today many people will not purchase items made in “sweat shops” even if it’s cheaper and better. This clearly shows that ethical decisions can have its monetary compensation in addition to the fact that people are being treated as humans and not as a means to a goal. So we are faced with ethical situations in business everyday, how does Jainism play a part in helping you become successful?

Jainism presents a unique advantage to us, because the fundamentals of Jainism teach how responsibility of a person’s actions is one of the keys to a successful life. All of us want to make the right decisions, but sometimes the sweet allure of earthly gains can be blinding. When an ethical situation offers itself, a person needs to carefully consider all the options. Can a person make money by making what he/she feel is the right decision? The truth is that all ethical decisions will not result in monetary success. Sometimes the need to reach a goal outweighs anything else, but at what cost? The responsibility remains ours to shift the world’s thinking to include the right decisions. However, Jains cannot add to the change until they incorporate ethics into their goals. If people measure goals only by money, then the path to reach it can often supersede the need to think of what is not only Jain but also what is ethical. On the other hand, if objectives consisted of money and Jain principles, then the decision making process will take both characteristics into account. If you are not the decision maker, you need to make the decision makers aware of the ethical implications of a situation, because it is up to you to make a difference. Remember that a vision starts with one person’s dream, and whether the dream will develop into reality depends on that person. At the very least, Jain principles need to be a part of a person’s mindset and work, no matter how limited the scope or his/her effect. Trax In Space did not grow because I began with the largest tracker site on the Web, it matured after a series of small decisions and small accomplishments, all of which centered on my passion, ethics and Jainism. It can happen, but you must believe it can happen.

In the face of wealth, pride, rank, and success, Jainism can often take a backseat in business. A new world slowly emerges, because people are becoming more aware of the world around them and the profound impacts their decisions have in business, society, the world, and themselves. Reaching a goal involves more than just passion, it needs clarity of mind, confidence in one’s self and abilities, rationale of thought, and integrity. Our Jain background is an advantage that must we must maximize. Only after people realize that business success can incorporate ethical decisions will the strength of Jainism become evident. The question is not whether it can be done, because it can be; rather the question is, will you.

Source - http://www.saurin.net/writings/bussuccess.html

Wednesday, April 8, 2015

Amendments to “The Real Estate (Regulation and Development) Bill, 2013

Amendments to “The Real Estate (Regulation and Development) Bill, 2013

Apr 07, 2015

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. The recommendations of the Standing Committee of Parliament on Urban Development and suggestions of various stakeholders (consumer organizations, industry associations, academia, experts etc.) have also been included after extensive consultations.
The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.
The Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. The Bill contains provisions of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters and allottees; establishment of Real Estate Regulatory Authority; establishment of fast track dispute resolution mechanism through adjudication; establishment of a Real Estate Appellate Tribunal; offences and penalties etc.
These measures are expected to boost domestic and foreign investment in the sector and help achieve the objective of the Government of India to provide ‘Housing for All by 2022’, through enhanced private participation.
The Bill ensures mandatory disclosure by promoters to customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions. This in turn will enable the sector to access capital and financial markets essential for its long term growth. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.
The Bill is expected to ensure greater accountability towards consumers, and to significantly reduce frauds and delays. The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions.
The salient features of the Bill are as under:-
(a). Applicability of the Bill:
The proposed initial Bill was applicable for residential real estate. It is now proposed to cover both residential and commercial real estate;
(b). Establishment of Real Estate Regulatory Authority:
· Establishment of one or more ‘Real Estate Regulatory Authority’ in each State/ Union Territory (UT), or one Authority for two or more States/UT, by the Appropriate Government for oversight of real estate transactions,
· To appoint one or more adjudicating officers to settle disputes and impose compensation and interest;
(c). Registration of Real Estate Projects and Registration of Real Estate Agents:
Mandatory registration of real estate projects and real estate agents who intend to sell any plot, apartment or building, with the Real Estate Regulatory Authority;
(d). Mandatory Public Disclosure of all project details:
Mandatory public disclosure norms for all registered projects such as details of promoters, project, layout plan, plan of development works, land status, status of statutory approvals and disclosure of proforma agreements, names and addresses of real estate agents, contractors, architect, structural engineer etc.;
(e). Functions and Duties of Promoter:
· Disclosure of all relevant information of project;
· Adherence to approved plans and project specifications;
· Obligations regarding veracity of the advertisement for sale or prospectus;
· Rectify structural defects;
· Refund money in cases of default;
(f). Compulsory deposit of 50 percent:
To compulsorily deposit 50 percent (or such lesser percent as notified by the Appropriate Government) of the amounts realized for the real estate project from the allottees in a separate account in a scheduled bank within a period of fifteen days to cover the cost of construction to be used for that purpose;
(g). Adherence to declared plans:
· To bar the promoter from altering plans, structural designs and specifications of the plot, apartment or building without the consent of two-third allottees after disclosure;
· However, minor additions or alterations permissible due to architectural and structural reasons;
(h). Functions of Real Estate Agents:
· Real estate agents to sell properties registered with the Authority;
· Maintain books of accounts, records and documents;
· Not to involve in any unfair trade practices;
(i). Rights and Duties of Allottees:
· Right to obtain stage-wise time schedule of project;
· Claim possession as per promoter declaration;
· Refund with interest and compensation for default by the promoter;
· Allottees to make payments and fulfill responsibilities as per agreement;
(j). Functions of Real Estate Regulatory Authority:
The Authority to act as the nodal agency to co-ordinate efforts regarding development of the real estate sector and render necessary advice to the appropriate Government to ensure the growth and promotion of a transparent, efficient and competitive real estate sector;
(k). Fast Track Dispute Settlement Mechanism:
· Fast track dispute resolution through adjudicating officers (District Judge);
· Appellate Tribunal to hear appeals;
(l). Establishment of Central Advisory Council:
To advise the Central Government on implementation of the Act, recommend policy, protection of consumer interest and to foster growth and development of the real estate sector;
(m). Establishment of Real Estate Appellate Tribunal:
Real Estate Appellate Tribunal to hear appeals from orders of the Authority and the adjudicating officer. The Appellate Tribunal is to be headed by a sitting or retired Judge of the High Court, with one judicial and one administrative/technical member;
(n). Punitive Provisions:
Punitive provisions including de-registration of the project and penalties in case of contravention of provisions of the Bill or the orders of the Authority or Tribunal;
(o). Bar of Jurisdiction Courts:
Provision for barring jurisdiction of court and any authority from entertaining complaints in respect of matters covered under the Bill;
(p). Power to make Rules and Regulations:
· Appropriate Government to have powers to make rules over subjects specified in the Bill;
· Regulatory Authority to have powers to make regulations;
Background:
Real estate development and housing construction was largely the concern of State institutions till the 1980s with very few private promoters and a nascent industry. With the liberalization of the economy, conscious encouragement was given to the growth of the private sector in construction, with a great deal of success, and the sector today is estimated to contribute substantially to the country’s GDP.
Currently, the real estate and housing sector is largely unregulated and opaque, with consumers often being unable to procure complete information, or to enforce accountability against builders and developers in the absence of effective regulation.
Source - PMIndia

Monday, April 6, 2015

Income Tax Slab rates AY 2016-17 FY 2015-15

Income Tax Slabs & Rates
Proposed for Assessment Year 2016-17


Income Tax Slabs & Rates proposed for Assessment Year 2016-17 (Financial Year 2015-16) as per the Union Budget presented before the Parliament on 28th February 2015 by the Honourable Finance Minister Shri Arun Jaitley.
Please click on the links below to view the Income Tax Slabs and Rates proposed for the Assessment Year 2016-17 (applicable on income earned during 01.04.2015 to 31.03.2016) for various categories of Indian Income Tax payers.
Individual resident (Age below 60 Yrs.) or any NRI/ HUF/ AOP/ BOI/ AJPFirm
Senior CitizenLocal Authority
Super Senior CitizenDomestic Company
Co-operative SocietyOther Company
  1. Individual resident aged below 60 years (i.e. born on or after 1st April 1955) or any NRI/ HUF/ AOP/ BOI/ AJP*

    Income SlabsTax Rates
    i.Where the taxable income does not exceed Rs. 2,50,000/-.NIL
    ii.Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
    Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
    iii.Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
    iv.Where the taxable income exceeds Rs. 10,00,000/-.Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
    Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    Education Cess : 3% of the total of Income Tax and Surcharge.
    Abbreviations used :
       NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person

  2. Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year i.e. born on or after 1st April 1934 but before 1st April 1954)

    Income SlabsTax Rates
    i.Where the taxable income does not exceed Rs. 3,00,000/-.NIL
    ii.Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-10% of the amount by which the taxable income exceeds Rs. 3,00,000/-.
    Less : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
    iii.Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
    iv.Where the taxable income exceeds Rs. 10,00,000/-Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
    Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    Education Cess : 3% of the total of Income Tax and Surcharge.

  3. Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year i.e. born before 1st April 1934)

    Income SlabsTax Rates
    i.Where the taxable income does not exceed Rs. 5,00,000/-.NIL
    ii.Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
    iii.Where the taxable income exceeds Rs. 10,00,000/-Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
    Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    Education Cess : 3% of the total of Income Tax and Surcharge.

  4. Co-operative Society

    Income Tax :
    Income SlabsTax Rates
    i.Where the taxable income does not exceed Rs. 10,000/-.10% of the income.
    ii.Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
    iii.Where the taxable income exceeds Rs. 20,000/-Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-.
    Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    Education Cess : 3% of the total of Income Tax and Surcharge.

  5. Firm

    Income Tax : 30% of taxable income.
    Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    Education Cess : 3% of the total of Income Tax and Surcharge.

  6. Local Authority

    Income Tax : 30% of taxable income.
    Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    Education Cess : 3% of the total of Income Tax and Surcharge.

  7. Domestic Company

    Income Tax : 30% of taxable income.
    Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge
    • At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    • At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
    Education Cess : 3% of the total of Income Tax and Surcharge.

  8. Company other than a Domestic Company

    Income Tax :
    • @ 50% of on so much of the taxable income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
    • @ 40% of the balance
    Surcharge :
    The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under
    • At the rate of 2% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
    • At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 10 crores.


    Education Cess : 3% of the total of Income Tax and Surcharge.

Marginal Relief in Surcharge

When an assessee's taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in
Example In case of an individual assesseee (< 60 years) having taxable income of Rs. 1,00,01,000/-
1.Income TaxRs. 28,25,300
2.Surcharge @12% of Income TaxRs. 3,39,036
3.Income Tax on income of Rs. 1 croreRs. 28,25,000
4.Maximum Surcharge payable
(Income over Rs. 1 crore less income tax on income over Rs. 1 crore)
Rs. 700/- (1000 - 300)
5.Income Tax + Surcharge payableRs. 28,26,000
6.Marginal Relief in SurchargeRs. 3,38,336/- (339036 - 700)

Thursday, March 26, 2015


Monday, March 23, 2015

How to be happy



Service Tax/VAT on Builders in Maharashtra

Service Tax
Applicability of Service Tax –
Service Tax is applicable on Units sold/ Booked and on Units for which any money is received before issuance of Certificate of Completion.

Rate of Service Tax –
12.36% on 25% of Sale value (3.09% on Total Sale Value), if the Sale Value is Less than 1 Crore and Saleable area is Less than 2000 Sq ft
If not then Service tax is 12.36% on 30% of Sale Value (3.708% on Total Sale Value).

Point of Taxation (When Service Tax has to be Paid) -
The service tax has to be paid as and when the part payments (Booking Money, Slab wise Payments & all other payments) are received or becomes due, whichever is earlier

Input Tax Credit –
1.       Credit of Excise is not available as per Cenvat Credit Rules
2.       Credit for services used specifically for construction such as Service Tax on Architect Fees/ Payment to contractors etc is  available.

VAT
1.       VAT is applicable on Units sold/ Booked and on Units for which any money is received before issuance of Certificate of Completion.
2.       VAT is not to be collected from buyer, it is payble by developer (Compostion Scheme)
3.       Composition VAT Rate is 1%
4.       No Credit of VAT paid on purchases is available
5.       Tax is levied as and when the installments become due and payable or are received, whichever is earlier.


[I have taken service tax rate @ 12.36, it may change to 14% or 16% (14+2) when notification arrives]

Service Tax on Reimbursement of Expenses

A new clause has been inserted in demanding service tax on Reimbursement of Expenses

In section 67 of the 1994 Act, in the Explanation, for clause (a), the following clause shall be substituted, namely:— 
‘(a) “consideration” includes– 
(i) any amount that is payable for the taxable services provided or to be provided; 
(ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed; 
(iii) any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket

Clarity is reqd in this, as this will have a huge impact on Custom House Agents

Monday, March 16, 2015

Modernizing India's Agricultural Sector

India's Agricultural Sector is starving due lack of finances, frequency of droughts, poor farming technology availability & offcourse Politics.

A huge share of population is dependant on it, & Even creating disguised unemployment.

India needs to overhaul its agricultural sector & modernize it to make the "Make in India" truly successful.

Some of the Dominant Issues are
1. Very Low Literacy among Farmers.
2. Lack of Skilled Labor
3. Lack of Finance
4. Poor Crop Season Planning
5. Heavy Dependency on Monsoon
6. Isolation of Agricultural Sector from Financial Services
7. Poor Politics, Leading to inability to take bold decisions
8. Agriculture is Considered as a Lower Class Profession in India
9. Social Issues creating a roadblock to Development

If we see any developed economy, agriculture is a big contributing factor, for example- USA, Russia, Australia



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Steps taken by Govt to curb rising unempoyment

Read Full Press Release here

 The Reliable estimates of employment and unemployment are obtained through labour force surveys on employment and unemployment conducted by National Sample Survey (NSS) Office, Ministry of Statistics and Programme Implementation. Last such survey was conducted during 2011-12. According to the last 3 such surveys, the workforce grew from 45.91 crore in 2004-05 to 47.41 crore persons in 2011-12. The unemployment level decreased from 1.08 crore to 1.06 crore during the corresponding period. 

Government has taken various steps for generating employment in the country like encouraging private sector of economy, fast tracking various projects involving substantial investment and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP) run by Ministry of Micro, Small & Medium Enterprises, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) scheme run by Ministry of Rural Development and National Urban Livelihoods Mission (NULM) run by Ministry of Housing & Urban Poverty Alleviation. 

Government has also decided to strategically promote labour-intensive manufacturing and expand employment opportunities by promoting tourism and agro-based industries. 

The 12th Five Year Plan projects five crore new work opportunities to be generated in the non-farm sector and provide skill certification to equivalent numbers. The National Manufacturing Policy of the Government targets to create 10 crore jobs by the year 2022. 

To provide employment oriented skils, a new Ministry of Skill Development and Entrepreneurship has been established to coordinate the skill activities across Ministries. In order to improve the employability of youth, around 20 Ministries run skill development schemes across 70 sectors. According to the data compiled by National Skill Development Agency (NSDA), about 76.37 lakh persons were given skill development training in the year 2013-14 under these schemes. Ministry of Labour & Employment is also contributing in this direction by enhancing the number of ITIs to 11,964 (Govt. 2284 and Pvt. 9680) which impart Vocational Courses certified by National Council for Vocational Training. It has also revamped apprenticeship training scheme. 

This was stated by Shri Bandaru Dattatreya, the Minister of State(IC) for Labour and Employment in response to a written question in Lok Sabha today. 

Problems Indian agriculature is Facing & How Modiji is fighting them

Agriculture Problem -
India is a agriculture dominant country, where a huge population is dependent for its earning on agriculture. The Per Capita income is very very low in agricultural sector in india. In addition to this, frequently there are droughts.

Solution -
Its a major issue & cant be solved suddenly. But The Govt has taken initiatives as below
1. Soil Testing
    You may feel that it is insignificant, but actually it is a vital development as farmers in india are very less literate & doesn't have scientific knowledge about agriculture & soil issues

2. Kisan Call Centre
    Now, farmers can simply make a call & get their queries resolved

3. Drought Issues
    No Govt can provide huge irrigation facilities all over india, It may sound harsh, but its a fact.
    So some solutions are - Developing new seeds, which grow on less water, Organic Farming etc

Article by - Rahul Jain


IMF Considers Indian Economy a bright spot

Source -  Zee News

New Delhi: International Monetary Fund chief Christine Lagarde hailed India as a bright spot in the otherwise gloom-ridden global economy Monday, saying the recovery from the 2008-2009 financial crisis was still fragile.

Speaking at the start of a two-day visit, Lagarde said India was bucking the trend of declining growth seen in other major economies and was on course "to become a key engine for global growth".

With the global economy expected to grow at only 3.5 percent this fiscal year and even Chinese growth decelerating, Lagarde predicted India would soon be the fastest growing major economy.

"More than six years after the global financial crisis, the recovery remains too slow, too brittle, and too lopsided," Lagarde said in a speech in New Delhi ahead of talks with Prime Minister Narendra Modi later Monday.

"We have pared down our forecasts of global growth since last October, despite the boost from cheaper oil and stronger US growth.

"And while the global economy is expected to grow by 3.5 percent this year, and 3.7 percent next year, this is still below what could have been expected after such a crisis," she told an audience of business leaders.

"In this cloudy global horizon, India is a bright spot," she added.

Since Modi came to power last May, inflation has fallen to around five percent while revised gross domestic product (GDP) data has put growth for the current financial year at 7.4 percent, meaning Asia`s third largest economy is now outpacing China.

A fall in global crude prices has also been a major boon to a country that is one of the world`s biggest oil importers.

Lagarde welcomed the government`s first full budget last month for striking "a good growth-equity balance" and praised Modi`s drive to make India a major manufacturing hub and an easier place to do business.

But she also stressed that the government needed to do more to allow "an open and competitive business environment to flourish", saying up to USD 1 trillion in infrastructure investment was required over the medium-term.
While Modi has pledged to streamline bureaucracy, Lagarde said that too many projects were still being stalled by red tape.

"Much needs to be done in easing land acquisition, expediting clearances, and establishing a stable regulatory regime so that the private sector can invest," she said.

"These issues are on the radar of policymakers, which is promising, they must be on the action list."

Lagarde is paying a two-day visit to India, her first since Modi`s right-wing Bharatiya Janata Party (BJP) ousted the centre-left Congress party last May after a marathon general election.

As well as her talks with top officials and the keynote speech in Delhi, she will travel to the financial capital Mumbai for other meetings on Tuesday.