Non-negotiable letter of credit A non-negotiable letter of credit is a financial instrument used in international trade to provide payment security for the seller or exporter. Unlike a negotiable letter of credit, which can be bought and sold on the secondary market, It cannot be transferred to a third party. It is only valid between… Read More »
Convert regular GST to composition Convert regular GST to composition: To convert regular GST to composition scheme in India, you need to follow the below steps: 1. Log in to the GST portal (www.gst.gov.in. (http://www.gst.gov.in/)) using your registered credentials. 2. Go to the “Services” tab and select “Registration”. 3. Click on “Application to opt for… Read More »
Input Tax Credit However, it’s important to understand that not all goods and services are subject to RCM. GST is only applicable under the Reverse Charge Mechanism (RCM) in specific situations as specified by the government. For instance, RCM applies to services provided by a goods transport agency, legal services, services provided by an… Read More »
Can we provide a personal PAN number for GST registration No, you cannot provide a personal PAN (Permanent Account Number) number for GST (Goods and Services Tax) registration of a company. It requires a PAN number that specifically issue to the company by the Income Tax Department of India. For more information to Visit https://www.gst.gov.in/… Read More »
GST Compliance GST Compliance, Under the Goods and Services Tax (GST) regime in India, different categories of taxpayers are required to File returns to fulfill their GST Compliance. Here are the types of taxpayers and their corresponding return filing requirements: Regular taxpayers: Registered individuals or businesses who are liable to pay GST on their… Read More »
Which items are liable for cess in GST In GST, cess is levy on certain goods or services that are consider to be luxury or sin goods, such as cigarettes, tobacco products, pan masala, aerated drinks, and luxury cars. For more information to visit https://www.gst.gov.in/ The proceeds from the cess are mean to be use… Read More »
GST invoices manually GST invoices manually, For businesses with a turnover of up to Rs. 1.5 crores in a financial year, GST invoices can be issued manually. 1.5 crores in a financial year, GST invoice can be issued manually. Here are the steps to issue a manual GST invoices: Create an invoice format that… Read More »
If toll tax is added to car hire bill on which amount TDS will be deducted Yes, you are correct. TDS is not applicable on toll tax as it is not considered as income. Therefore, when toll tax is included in a car hire bill, TDS will not be deducted on it. TDS is only… Read More »
Why is the output GST a liability Output GST is a liability because it represents the amount of GST that a business collects from its customers on sales made during a particular period. When a business sells goods or services, it charges GST to its customers, and this collected amount of GST is held as… Read More »
The working capital cycle time formula The working capital cycle time formula, also known as the cash conversion cycles, is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash. The formula is: Working capital cycle times = Inventory days + Receivables days –… Read More »
