Good evening everyone,
My name is Shweta Sharma. I started a firm one year ago, and I am currently working from home with a team of 3 employees. Could anyone please assist me with easy accounting formats? Accounting is not my forte as I primarily focus on recruitment. Additionally, I would appreciate guidance on how to handle service tax payments.
I have an incentive plan in place where I share 10% of the billing amount above 1 lac with recruiters upon payment by the employers. Please feel free to share any suggestions or important considerations I should keep in mind regarding this incentive plan.
Thank you and regards
From India, Mansarovar
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My name is Shweta Sharma. I started a firm one year ago, and I am currently working from home with a team of 3 employees. Could anyone please assist me with easy accounting formats? Accounting is not my forte as I primarily focus on recruitment. Additionally, I would appreciate guidance on how to handle service tax payments.
I have an incentive plan in place where I share 10% of the billing amount above 1 lac with recruiters upon payment by the employers. Please feel free to share any suggestions or important considerations I should keep in mind regarding this incentive plan.
Thank you and regards
From India, Mansarovar
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Hi Shwetha Sharma,
First of all, I would like to understand whether you have registered under Service Tax. If yes, then you may charge service tax of 15% on the final bill value (Service Tax 14% + Swachh Bharat Cess 0.5% + Krishi Kalyan Cess 0.5%).
There is reverse taxation if it involves manpower supply. Under this, you need not charge, as the employer will be paying to the government.
For more details, you may reach me.
From India, Bangalore
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727First of all, I would like to understand whether you have registered under Service Tax. If yes, then you may charge service tax of 15% on the final bill value (Service Tax 14% + Swachh Bharat Cess 0.5% + Krishi Kalyan Cess 0.5%).
There is reverse taxation if it involves manpower supply. Under this, you need not charge, as the employer will be paying to the government.
For more details, you may reach me.
From India, Bangalore
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Dear Shweta,
Accounting predominantly is to record the business/profession transactions in order to know the financial result. As per Section 44AA of the Income Tax Act, 1961, if your income exceeds 120,000 or turnover/gross receipts exceed 10 lakhs in any financial year, you must maintain the books of accounts.
With regard to service tax: recruitment services fall under supplying of manpower. Hence, if your turnover exceeds 9 lakhs, you have to obtain the service tax number, and if turnover exceeds 10 lakhs, then you can start to collect the 15% service tax and remit the same to the government. Since you are in a proprietor/partnership firm, you have to pay service tax electronically by the 6th after closing the quarter. However, for this existing quarter (1/1/2017 To 31/3/2017), the due date is 31/3/2017. Half-yearly filings have to be done, and the due date is 25th April for this existing half-yearly period. Section 68 of the service tax deals with reverse charges as per Notification 7/2015-ST dated 1/3/2015. Effective from 1/4/2015, the service of supplying manpower falls under 100% reverse charges, meaning there is no need to charge service tax on the service invoice; the service receiver shall pay 100% service tax instead of the service provider.
Also, note that reverse charges shall be applicable only if you issue the invoice to a body corporate. Other than a body corporate, no reverse charges shall be applicable.
Thanks & Regards,
V SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
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Accounting predominantly is to record the business/profession transactions in order to know the financial result. As per Section 44AA of the Income Tax Act, 1961, if your income exceeds 120,000 or turnover/gross receipts exceed 10 lakhs in any financial year, you must maintain the books of accounts.
With regard to service tax: recruitment services fall under supplying of manpower. Hence, if your turnover exceeds 9 lakhs, you have to obtain the service tax number, and if turnover exceeds 10 lakhs, then you can start to collect the 15% service tax and remit the same to the government. Since you are in a proprietor/partnership firm, you have to pay service tax electronically by the 6th after closing the quarter. However, for this existing quarter (1/1/2017 To 31/3/2017), the due date is 31/3/2017. Half-yearly filings have to be done, and the due date is 25th April for this existing half-yearly period. Section 68 of the service tax deals with reverse charges as per Notification 7/2015-ST dated 1/3/2015. Effective from 1/4/2015, the service of supplying manpower falls under 100% reverse charges, meaning there is no need to charge service tax on the service invoice; the service receiver shall pay 100% service tax instead of the service provider.
Also, note that reverse charges shall be applicable only if you issue the invoice to a body corporate. Other than a body corporate, no reverse charges shall be applicable.
Thanks & Regards,
V SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
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Service Tax.pdf