BATTLE OF GST : STATE VS CENTER

Introduction

Goods and Services Tax (GST), the 122nd Constitutional Amendment Bill, 2014 tabled by Finance Minister Arun Jaitley has already passed in the Lok Sabha. However, due to conflicts between the States and Centre and the reason that the Centre is not having majority in Rajya Sabha; GST bill is lying on the tables of Rajya Sabha since past few months, awaiting the clearance therefrom. What are the reasons of conflicts between the States and Centre? What steps are taken by the Centre to make the States affirmative to GST implementation? Why the states are taking so much time to give green signals to GST bill? This article is an attempt to find answers to some of these questions.

Taxing Powers Of Centre & States – Present Status

Under present scenario, Centre is empowered to levy and collect following Indirect taxes:-

• Central Excise Duty – On manufacture of goods
• Customs Duty – On import of goods from abroad
• Service tax – On provision of services

Indirect Taxes levied and collected by States are as follows:-

• Value Added Tax (VAT) – On sale of goods
• Central Sales Tax (CST) – On interstate sale of goods
• State Excise – On manufacture of alcohol

Besides these taxes, State government is also empowered to levy other indirect taxes like Entry tax, Entertainment tax, Luxury tax, Electricity tax, stamp duty, etc which are normally entrusted to local bodies prevailing in the states.

Taxing Powers Of Centre & States – After Implementation Of GST

In the GST bill, the constitutional amendment has been proposed to empower the Centre and States simultaneously to levy and collect indirect taxes on the entire chain from the stage of manufacture till the sale to ultimate consumer of goods/services. Thus, after implementation of GST:-

• In the GST bill, dual GST has been proposed. Therefore, both Centre and states will be able to levy and collect GST simultaneously on the same set of transaction from the stage of manufacture till consumption.
• The taxable event will no longer be manufacture or sale of goods; rather it will be supply of goods/ services against a consideration.
• States will also receive revenue from transactions related to provision of services. Presently, states are not empowered to collect any amount in respect of provision of services.
• Centre will also receive revenue from supply of goods post manufacture. Presently, Centre is not empowered to collect any tax on any post manufacture activity.
• Taxes levied by local bodies like Purchase tax, entertainment tax, octroi, luxury tax, etc. will not be subsumed in GST, thus, these will continue to be collected by local bodies working under direct control of respective States.
• GST on petroleum crude and products will be levied on some future date as decided by GST Council. Till then, VAT will continue to be levied by States on sale of petroleum and products.
• 1% additional levy proposed in the GST bill will be collected by the Centre and will be distributed in the State in which the supply originates.

Fear Of States

As each thing has its own pros and cons the GST also brings with it many consequences which make its implementation a tough challenge for Modi Sarkar and the GST proposal is presently receiving severe opposition from some states even those ruled by the BJP government because of their very reasons. Here the important thing to consider is that Why the states are so worried about the upcoming GST? Some of the fears of States are:-

• States predict that there will be huge loss of revenue due to implementation of GST as those taxes which are their major source of revenue would get subsumed in GST. It is feared that the development of states will have adverse affect due to scarcity of funds.
• The revenue neutral rate (RNR), i.e. the rate at which neither any gain nor loss will occur to states initially; is yet to be decided and may be another reason of dispute between the Centre and States.
• Central Sales tax (CST) which is levied on interstate trade @ 2% is a major source of revenue of States. In the GST Regime, CST is to be replaced by 1% additional levy which will be levied for initial two years of implementation of GST. This period can be increased if the GST council decides. There is direct loss due to decrease in rate by 1% besides other projected losses. Tamil Nadu, for example, estimates its losses from scrapping CST as Rs. 3,500 crore annually.
• The GST bill proposes that there will be dual GST structure where the Centre and the States will administer independently the CGST and SGST, respectively. Since the same set of transactions will be subject to control by both authorities, it is feared by States that the Centre will be the dominating authority.

No Such Huge Loss To States – Centre’s Verdict

On the one hand, States are worried and opposing GST on the grounds that it will take them to the ocean of huge Revenue losses; on the other hand, the Centre says there will not be such a huge loss. The reasons stated by Centre for this verdict are summed as follows:-

• The proposed GST rate is also roaming between 18-22% which will generate more revenue to both Centre as well as the States.
• The scope of GST will be much wider than the existing tax structure. Thus, number of assesses in GST regime will be much more than registered at present. More the no. of assesses, more the tax collection.
• The loss suffered due to scrapping of VAT will be compensated mainly by the income derived from provision of services in the GST regime.
• Loss suffered by subsuming the CST will be fulfilled to some extent by 1% additional levy.
• The taxes like purchase tax, octroi, entertainment tax, etc. will not be subsumed in GST. Thus, there will be direct income from these taxes collected by local bodies which report to the States.
• The petroleum crude and petroleum products have been kept away from GST initially and will be brought under purview of GST in some future date as decided by GST council. Till then, the States will continue to charge VAT on the same.

Compensation Of Losses For 5 Years – A Step To Seek ‘Yes’ Of States

It has been assured by Finance Minister that States will not suffer much loss due to implementation of GST. The reasons for this assurance have already been discussed in the forgoing para. However, if there is any loss anyhow, the Centre has promised to compensate the same for first five years. The compensation will be as follows:-

For first 3 years – 100%

In fourth year – 75%

In fifth year – 50%

This assurance is said to be the most important step taken to make the States agree for implementation of GST. However, it is expected by Centre that all states may not require compensation for five years; particularly the Consuming states; which will enjoy the revenue increase with the implementation of GST.

While Parting

Introduction of GST have the drastic impact on the present taxation system of our country as it subsumes most of the Indirect Taxes. However, the States are not able to accept the change so easily. The provision of compensation for five years may make them affirmative towards GST. But at the same time, effective measures are required to be taken so that this provision may not be misused by the States. However, at present, what the Centre wants is only one “Yes” from the States. Once the GST bill is passed, it is hoped that all the demerits associated to it will be coped by effective drafting of the GST Act and its implementation.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India. 

Why Outsource Accounts Receivable Services To Megasoft?

Our accounts receivable outsourcing services facilitate our esteemed customers to smoothly deal with chief finance functions that impact cash flow, and are important for sustaining a strong and energetic business. Facilitating our clients to amplify their control on every account with constant follow-up on exceptional invoices, and outstanding reporting on account activity, our Accounts Receivable Services allow speedy payments and enhanced cash flow. Outsource Accounts Receivable Services to Megasoft Solutions and benefit from precise services.

We offer an extensive array of accounts receivable outsourcing services to our international customers with a choice to outsource all or slice of their accounts receivable functions to us. Outsource Accounts Receivable Services to Megasoft Solutions and benefit from top quality services at a less cost. Let us handle your accounts receivable precisely and effectively as well as save time and money.

Accounts Receivable Services We Offer

We offer accounts receivable services to esteemed clients across the world, comprising clients in the Singapore, Dubai, Hong-Kong, and Australia. We provide a complete spectrum of end-to-end solutions, including : -

• Maintaining subsidiary receivables ledger
• Preparing accounts receivable reports
• Record and account for revenue
• Carrying out process adjustments approved by the client
• Billings preparations (as needed by TAD) and mailing after client approval
• Accounts receivable deductions management (AR deductions management) services
• Preparing and delivering periodic statements
• Applying cash received to customer accounts as well as resolving short pays
• Entering receivable transactions into the accounting system
• Issuing of credit memos as well as refund checks approved by the client

Accounting Software We Use

We offer you with the not only good but the best value for your investment. Our immense experience, functional specialization, and project management expertise make us the industry boss in accounts receivable solutions. We stick to industry best practices and have sturdy automated procedures to offer leading-edge Accounts Receivable Outsourcing Services.

Why Outsource Accounts Receivable Services to Megasoft?

Our esteemed customers can easily avail following advantages by outsourcing accounts receivable services to us, including : -

• Minimized operating cost
• A virtual extension of customer’s credit department
• Enhanced speed as well as flexibility
• Eradication of un-applied credits
• Lessened delinquencies
• Reduce in bad debt
• Increased cash flow and recoveries
• Enhanced customer loyalty through quality assurance procedures and a problem-solving method

• Considerable time saved by granting instant access to document images by manifold users
• Our AR deductions management services assist you enhance productivity by streamlining your receivables proficiently
• Increase in salvaged revenues from initial charge-offs through a highly experienced collections team
• Merged print, mail, and electronic delivery of accounts receivable documentation
• Simple retrieval of documents as well as data 24x7 through a common web browser
• Universal repository for all client service needed documentation

Discover the Advantages of Outsourcing Accounts Receivable Services to Megasoft

• We lay unparalleled emphasize on security as well as accuracy
• We offer tailored account handling programs. Working with clients, we design an inbound as well as outbound strategy for handling their receivables completely based on their customer relationship plan
• We use supreme quality enhancement programs such as TQM for constant enhancement
• Our Customer Service Representatives are well-trained to effectively handle and settle customer disputes as well as discrepancies. Ongoing scrutinizing makes sure each account receives professional handling

For detailed information on Megasoft’s Accounts Receivables Services, please visit www.megasoftsol.com or contact our executives @ 011-46067710, they will be glad to assist you.

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India. 

TAX – No Problem… That’s Our Business!!!

Direct Tax is the tax, which is paid straightforwardly to the government by the persons on whom it is obligatory. It could not be shifted onto others. The appropriate examples of direct taxes are property tax and income tax. Direct tax is frequently accompanied by a tax return filing by the taxpayer.

Underneath Direct Taxation, we offer tax consultancy services in the subsequent areas: -

• Direct Tax Services
• International Taxation
• Double Taxation Avoidance Agreements
• Fringe Benefit Tax

Tax Consultancy Services for Corporate Clients

With comprehensive functional know-how of ERP (enterprise resource planning), undertake Direct Tax services for corporate clients. Our tax services for corporate clients comprise : -

• Compilation of tax details for audit as well as full support to the auditors.
• Management of tax records and reports in both Soft as well as Hard files comprising documentation as per SOX.
• We give support in the areas of PAN, TAN, and Online Tax Credits view also.
• Day-to-day tax matters, which comprise replying to varied tax notices and giving essential tax support on daily tax matters.
• We offer tax reporting on well-defined frequencies such as monthly, quarterly, annually to Parent Company as per their formats.

• Tax compliance that contains latest Income tax and Fringe Benefit Tax (FBT) calculations and deposits, TDS compliance and filing of returns.
• We assist in the compilation of Transfer pricing documentation as well as certification.
• Compilation of several details for Tax Assessment purposes such as Scrutiny as well as Appellate level for Transfer pricing and Income Tax.
• We help and lead in the compilation of corporate tax returns such as Wealth tax, Income tax, and FBT, and also it’s e-Filing with the revenue division.
• We provide all the essential information to management auditors or statutory auditors in relation to tax matters.

Personal Taxation Consultancy Services

We provide personal taxation consultancy services like tax compliance and advisory services, personal tax planning, and personal tax consultancy services, which cover the following : -

• We help and lead in getting several tax registrations that covers Permanent Account Number (PAN).
• Personal Tax Consulting.
• Advisory on tax issues like tax investment / loans / capital gains, etc.
• We provide review as well as backing in latest tax computations.
• Management of tax records in Soft as well as Hard forms.
• Personal Tax Services Compliances that covers filing as well as compiling of Tax returns.
• Representation before the Tax authorities related to tax assessments, reimbursements, and other related matters.

Tax Compliances

We undertake Regulatory Compliances such as statutory returns as well as documents preparations, compilations and e-filings along with the income authorities that comprise the following : -

• Looking Advance Rulings
• Tax Audits according to the provisions of Indian Income tax Laws
• We help and lead for the preparation and review of the withholding tax (TDS) returns according to the provisions of the Income Tax Act, 1961
• We assist in the planning, organizing, preparing, and reviewing of corporate tax returns to make sure the compliances with the Income Tax Act, 1961 and the varied judicial pronouncements.

Tax Representations

We undertake tax representations before the income authorities for Tax Assessments of Income tax and relocate pricing cases and any other such tax matters.

Foreign Remittance Certifications

Besides, we undertake consultancy as well as certification services needed for making foreign remittances as per the provisions of section 195 of the Income tax Act, 1961 or as per Double Taxation Avoidance agreements (DTAA) according to the guidelines of Reserve Bank of India (RBI). The services of this category extensively comprise : -

• Representations before International taxation authorities related matters arising out of withholding tax on foreign remittances.
• We help in several matters of issuing Foreign Remittance Certificates underneath the several provisions of the Income Tax Act, 1961.

• We assist in looking of certificates from the foreign taxation division for non / less deduction of tax at source (TDS).
• We provide expert suggestions on the applicability of withholding tax on several international remittances according to the Indian Income tax Act / DTAA.
• We support in other documentation as well as remittance support and dealing with authorized dealers related international remittances.
• We assist and lead in the Royalty and Technical know-how workings as per RBI (Reserve Bank of India) formats and guidelines and withholding the tax certification on such remittances.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India. 

Looking For Payroll / HR Software (HRIS)? Then You’ve Come To The Right Place

What Is HRIS?

Human resource information system (HRIS) or human resource management system (HRMS) is basically an intersection of human resources as well as information technology through HR software. This permits HR activities and procedures to occur electronically.

To put it other way, a HRIS might be observed as a way, via software, for businesses small as well as large, to take care of a number of activities, comprising of those linked to human resources, payroll, management, and accounting. A HRIS permits a company to sketch its HR costs more efficiently, as well as to organize them and handle them without needing to allocate several resources toward them.

In most of the situations, a RIS will also escort to augments in efficiency when it comes to making decisions in HR. The decisions made should also boost in quality – and as a result, the productivity of both employees as well as managers should amplify and become more efficient.

Solutions offered by HRIS Systems

There are several solutions offered to a company that accepts a HRIS. Few of these comprise solutions in recruiting, payroll, training, HR, and compliance. The majority of quality HRIS systems consist of flexible designs that feature databases that are incorporated with an extensive array of facets available. Preferably, they will also contain the capability to make reports and examine information swiftly as well as precisely, in order to make the team easier and simpler to handle.

Through the efficiency benefits conferred by HRIS systems, a HR administrator could acquire so many hours of his / her day back instead of investing these hours dealing with non-strategic, ordinary jobs needed to operate the administrative-side of HR.

Likewise, a HRIS permits employees to exchange information with utmost ease and without the requirement for paper via the provision of a single place for announcements, external web links, and company policies. This place is well-designed to be centralized and accessed effortlessly from anywhere within the company that also serves to lessen redundancy within the organization.

For example, when employees want to complete often recurring activities such as requests for time off or electronic pay stubs as well as changes in W-4 forms – such processes could be taken care of in an automated fashion without the necessitate for human management or intervention. Thus, lesser paperwork occurs and approvals, when deigned, might be suitable more proficiently and in lesser time.

HR and Payroll Factors

When a company spends in a reasonable HRIS, it unexpectedly becomes capable of managing its team by seeking at two of the main components: that of HR and that of payroll. Apart from these software solutions, companies also spend in HRIS modules, which facilitate them put the whole productivity of their workforce to use, comprising of the various experiences, abilities, skills, and talents of all staff within the enterprise.

HRIS Popular Modules

An array of famous modules is accessible, comprising of those for recruiting, such as organizational charts, succession planning, email alerts, resume & applicant management, quick report production, employee self-service, tracking of employee training, attendance, and the administration of benefits.

HRIS Summary

In conclusion, it is very important to pick the correct HRIS. A company that takes the time to spend in a HRIS that perfectly fits their objectives, values, goals, and mission, is a company that is spending in its future and in its growth as well as success. It will be mandatory to customize any HRIS to the unique requirements of a company so the system will keep flexible and relevant throughout the life of the company or enterprise.

Find HRIS Systems

Ready to find the perfect HRIS system for your organization? Simply visit www.megasoftsol.com or call us now @ 011-46067710 to find the correct HRIS for your company. 

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India. 

Know Your Payroll Compliance Risk... We Manage Your Risk...

Any space in compliance on income entitlements of employees could land a company in trouble. The company might finish up having a financial implication or a risk of action or IR issues triggered. Even a small non-compliance could cause important damage or smash up to the reputation of the company.

Megasoft with its expertise, sufficient skill sets, pan-India presence, well-defined procedure, and a right technology support could facilitate Payroll Compliance Services (PCS). The spirit behind the subsequent legislations would be taken care of through this service:

• The Employees’ State Insurance Act, 1948
• The Minimum Wages Act, 1948
• The Payment of Wages Act, 1936
• Varied State enactments on Professional Tax
• The Employees’ Provident Funds and Miscellaneous Provisions Act 1952

Megasoft Service Highlights

• Maintenance of related statutory registers and other records
• Timely remittance of statutory contributors
• Registrations, renewals, and amendments
• Compliance underneath several ESI sub codes
• Processing income data for creating contribution challan
• Transfer-in, transfer-out, and settlement of EPF accounts
• Facilitate customers in efficiently managing inspections by authorities
• Generation and dissemination of client exact error-free data, MIS and statutory documentation

• Filling statutory returns as per statutory timelines
• Foster rapport and maintained coordination with several authorities
• Complete support to the employees in processing applications for getting rightful advantages
• Help desk for payroll allied compliance (only in exclusive resource model)

The Megasoft Advantages

• Analytics as well as legal consultation to customers on income structuring / re-structuring with compliance outlook
• Cost-benefit to the customers
• Efficient monitoring of compliance status through web-based dashboard

Megasoft Undertakes

• Labour Law Audit
• ESI & PF Compliances
• Industrial Licenses
• Shop & Establishment Compliance
• Labour Law Licenses
• Labour Law Consulting Payroll
• Factories Act Consultant
• Labour Law Record Maintenance
• Labour Law Compliances
• Labour Law Registrations

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India. 

When It Comes To Compliance, We Don’t Take Chances. What About You?

Involvement of Contract Labour is an epoch old practice. With the launch of new economic policy, this has assumed higher importance.  In today’s eon, in the business world, this is the most talked about subject. Employers of several industries, right from small to big, do depend on this team in order to keep and as Principal Employers; they require to take maximum care when they involve a contractor. In addition to being compliant, they have to make sure that the contractors involved by them to stay compliant.

Some of the Significant Activities : -

• Maintaining records, forms, registers, and notices underneath varied legislations
• Payment of arrears of contribution with interest
• Registration & license underneath Contract Labour Regulation & Abolition Act
• Possible consequences / penalty, if not complied with
• Fine and / or imprisonment
• Remittances of ESI, EPF & LWF contributions for contract workers
• Absorption of the contract labourers
• Payment of least wages to contract labourers

Our Contract Labour Compliance Services is helpful for all stakeholders: the contractor, contract workforce, and the principal employer. We have initiated in the involvement of blue-collared workers in the organizations. Our efforts in making sure that minimal wages, on-time remittance of ESI, PF and LWF payments as well as access to health care have improved their quality of life and created impact on their families.

Few Highlights

• Make sure minimal wage payment through successful processes
• Acquire license for each applicable contractor
• Accident coordination support
• Attain Registration Certificate (RC)
• ESI and EPF contribution via principal employer’s contractor’s code / sub code
• Management of office timings
• Coordination of advantages underneath ESI, WC, EPF & LWF for CL
• To keep contractor-wise records, registers, and returns

The Megasoft Advantages

Whether, it is a green field site, a well-established factory, a retail outlet, a mine or a commercial establishment, we make sure:

• Eradicates the necessitate to deal with the contractors for compliance related facets
• Trouble-free processes in involving contract team
• Instant access to knowledge as well as information on countrywide differences in contract labour involvement
• Expertise in labour legislation consultation for wide level decision making
• Tailored processes to control as well as monitor the involvement of contract team
• Technology driven services for routine ‘on-location’ compliance and back-up data

Megasoft Undertakes

• Labour Law Audit
• Industrial Licenses
• Shop & Establishment Compliance
• Factories Act Consultant
• Labour Law Licenses
• Labour Law Compliances
• ESI and PF Compliances
• Labour Law Registrations
• Labour Law Consulting Payroll
• Labour Law Record Maintenance

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India. 

Cloud Computing – The Future Is Not Cloudy But Bright In India

In today’s epoch, cloud computing is one of the most talked about IT trends. This is just because of the fact that cloud computing has helped varied enterprises to save money whereas adding to the convenience of the users. The word ‘Cloud’ completely refers to the widespread internet that means Cloud Computing is an internet based computing where exceptional services are provided to the users through internet.

What Exactly Is Cloud Computing?

It is a different type of computing that engages sharing of computer resources rather than using dedicated devices or local servers for processing. In plain words, it is the procedure of stockpiling often used data on manifolds servers, which cloud be accessed by using the Internet. Several services like storage, servers, and applications are delivered to the user’s computing devices through internet. Few good examples of using Cloud are : -

• Google : - Letting the users to make documents as well as calendars for free
• Dropbox : - An online storage offering 2GB of free storage to the users

Need Of Cloud Computing

Cloud Computing is now becoming a regular business standard. It abridges the user’s accessibility. It delivers a virtual storage room to the user that can be used without bothering about the details of the complete mechanism. Here are few other reasons, why each enterprise may need cloud computing for their business : -

Cost Savings : - Cloud computing eliminates the need of a company to spend in storage hardware as well as servers.

Emphasizing On The Business : - Since all the services will perform over the internet, a company does not have to exasperate about technical issues and other related problems collaborated with physical storage as well as backup. A company can, therefore, emphasize more on their core business.

Performance : - It provides consistent performance irrespective to the geographical place of the user. One more chief facet could be the automatic modernizing of services and applications.

Security : - Cloud Computing provides best security that shelters you against any unofficial access, modification, and loss of data.

Flexibility : - Even if slice of the cloud environment fails or ends working, the other resources persist to work until the problem is fixed.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.