10 Advisory Points by a CA which are generally not followed by SMEs and Public at Large

10 Advisory Points by a CA which are generally not followed by SMEs and Public at Large

1) GST

♦ Amendment of GST Registration – Updating all Place of Business, HSN and SAC Code of new products / services, Bank Accounts, Change in Management and Authorised Signatories

♦ Voluntary use of 8 digit HSN Codes for all GST inward and outward supplies. The Purchase order must mention that the vendor shall mention 8 digit HSN code on its invoice.

♦ Display of GSTIN Board all Places of Business

♦ Sequence number of your sales invoices should have a continuing patten e.g instead of starting invoice number for FY 2021-22 with say No. 1, you could use 1/2122

♦ While making payment / advance payment to vendors, ensure to check their GST filing status on the GSTN portal to cross check track record of filing as ultimately you have to get the credit of the Input GST through GSTR 2A / GSTR 2B.

2) PAN, Aadhar

• Link your PAN with Aadhar Card
• Aadhar has become the most important document of all. Ensure that the Name and DOB are correct on Aadhar. Update mobile number and email id on your Aadhar Card
• In case the spelling of your name, date of birth etc do not match with that on Aadhar, apply for PAN Correction immediately
• Link Bank Account with your PAN to receive the income tax refund

3) Bank Account

• The Account Name should bear the same spelling as mentioned on the PAN Card ( which would essentially be derived from your Aadhar Card ) only then the income tax refund would get credited to your bank
• Ensure that your Bank accounts are updated with PAN and Aadhar
• Register nomination

4) Import Export Code ( IEC )

• Update All Places of Business as Branches in IEC registration
• Update Bank Account in the IEC registration if there is any change

5) Income Tax

• Ensure to review and close all outstanding tax demands to avoid huge interest magnitude

6) Investments

• The Investments made must be in the same name which you have on your PAN, Aadhar as well as Bank Account e.g Raj Doshi is different from Raj C Doshi

1. Raj Chetanbhai Doshi is different from Raj Chetan Doshi

2. Raj Chetan Doshi is different from RajKumar Chetan Doshi

• The Investments made in the name of your spouse or your minor child should be paid from their respective bank account ( where they are the first holders )

e.g Fixed Deposits in the name of wife should not be made from husband’s bank account

e.g Mutual Fund SIPs in the name of senior citizen father should not be made from the earning child bank account ( in which bank acccount the child is the first holder )

• Check your NSDL / CDSL CAS statements for demat accounts and folios where nomination is not registered.

7) Vendor Declarations in Business

• Below declarations must be taken / given within the 1st month of the financial year
• Declaration from Transporter u/s 194C for non-deduction of TDS
• Declaration from Agents of Foreign Shipping Companies for non-deduction of TDS on Line Charges
• Submission of Form 15G/H to bank

8) Hard Copy Maintenance of Files

• Audit Reports, Balance Sheet and Income Tax Returns File
• Income Tax Assessment Files (separately for every year)
• GST / VAT Assessment Files (separately for every year)
• GST Refund Application File (separately for every refund application period)
• Insurance Policy File – Stock, Property, Life, Health, Theft Insurance of Godown, Flat, Employees, Cash
• Marine Insurance Policy File – separately in case of Importers and Exporters
• Bank Communication file – specially for exporters and importers requiring to close SB and BOE against remittances

9) PAN, TAN – Update the address on PAN as well as TAN for receiving the communications of notices promptly.

10) Make a WILL

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Author Details: CA Raj Doshi, Prop. R C D & Co., Chartered Accountants Email : [email protected], Mobile : 9820803593

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