I am finding, this is right time for a wakeup call because last month of Financial Year is crucial as 11th April, 2021 & 20th April 2021 is last day for GST Books closing and for your business if any Purchases left or sales left then it goes to next year and will distort current year picture.
Further, from this F.Y. 2020-21 last date for any type of belated Income Tax Return, without allowing any further filing, – is 31/12/2021. For example if your return due date was 31/07/2020 for F.Y. 2019-20 then you could file belated return till 31/03/2021 but now for F.Y.20-21 if your due date is 31/07/2021 or 30/09/2021 then belated return can be filed only up to 31/12/2021.
So take care of following things with your accounts team:
A. Books Closure (F.Y. 2020-21):
1. Confirm all purchases have been entered for the year and if any advance paid then ask for bill before 31/03/2021 if job done or goods delivered.
2. Confirm all expenses have been booked/entered – properly bifurcated in “Pre-paid” etc. for the year and if any imprest given to employees then ask for expenses bill in company name /supports before 31/03/2021.
3. Re-check all payments made which attracts TDS have been deducted and deposited to the Govt.
4. All TDS on salary payments have been calculated/recalculated due to Covid 19 variation in pay and all supports have been submitted by employees of their Investments, HRA etc.
4. Check for all Directors/promoters if their emoluments/earnings you want to increase/pay then this is high time to book by deducting proper TDS.
5. Match your earnings by Form 26AS till Dec 2020, because TDS return of March 21 qtr will be filed by payers by 31/05/2021 so you have to wait till that date for March, 21 payments.
6. Confirm all Invoices have been raised to the client, and specially confirm any short payment came to you, is any credit note required to issue and corresponding correction in March 21 GST return required? or if it is bad debt then also issue Credit Note for the same and your GST returns are open for corrections for 20-21 year.
7. Match all GST returns – GSTR 1 & GSTR 3B with books and if any ITC taken extra kindly reverse in March 21 returns and if any left then take. Please reconcile your GST Returns from 26AS also.
8. Any capitalization left in books – check if any payments made to contractors for work is under work progress or any advance paid for Capital Assets is un-adjusted all be careful and do it in same month for getting adequate Depreciation or ITC on the same.
9. Take care GST input for office capital assets (means those which are not directly used in your business like office furniture, computer etc) is not allowed immediately it gives in 20 quarters, so if taken extra in earlier years then recalculate and reverse the same in GSTR 3B of March 21.
10. Reconcile with Statement of Accounts of your suppliers & clients or customers for F.Y.20-21 up to Feb, 2021 so that anything being left can be accounted for within March 21.
B. Action Points:
1. Listen carefully to your accountants/CAs or employees they may ask very important information or supports for long time but due to your busyness in business you are not able to devote time – so do not miss March 21.2
2. Down load – Form 26AS – check Income & Investment & GST part
3. Send letters to Clients/Suppliers letters for balance confirmation.
4. Prepare proper documents for loans payable & receivable – if not related party then proper agreement with interest/TDS clause.
5. If loan from NBFC then deduct TDS on interest payment to them.
6. Ask to accounts department – for preparing Salaries paid reconciliation with TDS/ESI/PF.
7. Calculate any Statutory dues left un paid till Feb 21 please add in March 21 challan.
8. Prepare plan for Physical Verification of Fixed/Movable/Inventory as at 31/03/2021. But for Fixed Assets & Movable Assets (other than Inventory) can start immediately to avoid hotchpotch at 31/03/2021.
9. Go through with Internal Audit observations/Applicability of A/c Standards/Ind AS/New CARO points etc to give proper effect to books.
10. Ask to your CS for any remaining formalities for CA 2013.
11. Ask your liaison officer to confirm all Licenses are in place any approvals pending get it completed before coming of Auditors.
These are only suggestive points in general – check specific points as per your business need.
For any help or clarifications you are most welcome by undersigned have a good closing of F.Y. 2020-21 and wishing a very great start F.Y.2021-22.