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Accounting Coaching Classes for Upskilling and Training Employees

Today, most businesses will agree that employees are their biggest assets. Companies invest a…

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Today, most businesses will agree that employees are their biggest assets. Companies invest a lot in terms of hiring the right candidates and then retaining them too. At the same time, employees are also very passionate about their careers. They don’t shy to move on if there is stagnancy in terms of career growth or learning new skills of accounting training. Therefore, to align the interests of both, it is essential for businesses to make significant efforts towards constant development of the employees.

What Do You Coach About?
Businesses usually provide training to impart skills that are essential / required to perform existing jobs. Obviously, this is given; considering you would like to ensure that the employee can perform in the best possible manner in his/her current role.

However, organizations today also invest in ‘Upskilling’. Upskilling refers to the process of teaching new skills to existing employees through academies like Super 20 Training Institute. Such upskilling could also be essential, or in other cases, desirable for employees; which are discussed below.

Is Upskilling Required In Accounting?
Absolutely! In this constantly evolving business environment, accounting concepts and methods are being updated too. Entire accounting framework is being rejigged and new accounting standards are becoming applicable to the business. Fo example, accounting software (like Tally) is being updated to incorporate changes in laws like GST and so on. In such a scenario, providing training to employees is definitely the need of the hour! Training academies offers excellent accounting coaching classes in Ahmedabad, suitable to different coaching needs.

Whom To Upskill In Accounting?
Upskilling could be classified into two categories. One, teaching those skills which are essential to the changing work environment. For instance, training the existing accounting personnel about the new accounting standards applicable to the organization would be absolutely essential.

Second category could be teaching those skills that may not appear exactly essential to the existing role at hand, but could go a long way in improving efficiencies. For example, familiarizing tax team about the new accounting concepts, accounting software offering Tally courses, would help them in gaining a better understanding. And this will eventually reduce their dependence on accounting team. Sometimes, it could be essential too, say when the tax team needs to understand the applicability of ICDS and how they diverge from accounting standards that the organization follows. In either case, it improves employee morale as he feels he is learning something new and challenging.

A lot of corporates have in-house L&D (Learning & Development) team. Others may tie up with a dedicated accounting academy for this purpose. In either case, the importance of upskilling employees cannot be emphasized enough.

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Classroom Courses for Practical Knowledge and Training on GST

It’s been a while now that GST became applicable. A lot has been discussed…

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Training-for-GST

It’s been a while now that GST became applicable. A lot has been discussed before and after its introduction. The provisions have been explained and thrashed out at various forums, and many teething issues have also been identified. Moreover, some of these issues have even been resolved by the Government from time to time.

Having said that, no one can deny the novelty as well as the vastness of the subject. While concepts may seem similar to VAT and service tax, there are so many new provisions as well. Further, there are various aspects to the law like applicability, rate, input credit, compliances etc. and each aspect has its own nuances. Gathering a good understanding is important for all professionals, whether you are advising your own company or your client’s.

Why take a GST training?
As is in all cases, the Internet definitely comes in very handy to get a quick overview on the basic provisions. Some blogs may help you identify certain problem areas as well. But as they say, nothing beats classroom training.

A proper training on GST would not only answer your WHATs, but also WHYs. A classroom training would start from the basics including history and genesis of the legislation, it’s structure, and what the law says. And most importantly, the reason why a provision in law says what it says. Also, formal training helps you understand the practicalities, all at one place. The Internet might tell you the deadline for filing GST return, but only a good training institute would tell you the issues that you would face while filing the returns and how to deal with it. What’s best is that you don’t need to spend your precious time on reading and comprehending various sources on the internet. You don’t have to waste time trying to summarize them – and not to forget – getting confused with divergent views / thoughts that people may have. Instead, training on GST could help you get a good grip on the subject without wasting any time, as the experts would have already done their research.

What to Expect From a GST Training?

1) Practical, Practical, Practical Knowledge!
No one needs to know the section number or exact wording. ‘Bookish knowledge’ is not what you would want. It’s the practical GST training classes that is required so as to be able to apply it in your everyday work. Now in doing so, if you need to know some history, that would be fine!

2) Going Beyond The GST Law
Yes, a good GST training may also integrate some accounting and related aspects to it. Though, it may not be completely possible sometimes, and you may have to subscribe to a related accounting course. The point is that you should aim to get a good grip of the law and how it merges with other facets relevant in an organization.

While the Internet is a good source, it is not the answer when you are looking for a structured, thoroughly researched learning on GST. Subscribe to centres like Super 20 Training Institute for its very educative, practical GST training courses.

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Bank Reconciliation Statement

Amongst various ledger accounts maintained by an organization as part of its books of…

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Amongst various ledger accounts maintained by an organization as part of its books of accounts, one of them is bank ledger, also called bank book. Like any other ledger account, it captures entries that affect the bank balance, viz. salaries paid, receipts from debtors etc. 

While the bank ledger records these transactions to show a certain bank balance at the end of the period, the actual bank balance as per bank statement (also called passbook) for the same period may be different. This could happen on account of various reasons, for example, chews issued to vendors for payment but not encashed by them, i.e. not presented for payment. Or cheques received from debtor and captured in accounts but the credit is not reflected in the bank statement as yet. 

These days, with most transactions being NEFT / IMPS and therefore in almost real time, chances of such differences has greatly reduced. However, there could still be some differences, like bank charges levied by the bank which the organization gets to know only once the books are compared with the bank statement.

The process of comparing the bank balance as per books and bank statement and identifying differences is called bank reconciliation, and is usually documented by way of a BRS – Bank Reconciliation Statement.

Typical adjustments seen in a BRS are:

Description 

Impact on bank statement

Adjustment to bank book to arrive at balance as per bank statement

1.Cheques issued but not presented for payment by vendorWill inflate balance as per statementAdd to ledger balance
2.Cheques deposited but not clearedWill reduce balance as per statementReduce from ledger balance
3.Bank charges debited by bankWill reduce balance as per statementReduce from ledger balance
4.Interest income credited by bankWill inflate balance as per statementAdd to ledger balance
5.Cheques deposited but returned dishonoredWill reduce balance as per statementReduce from ledger balance
6.Standing instructions for certain payments not captured in booksWill reduce balance as per statementReduce from ledger balance

Depending upon the volume of transactions, businesses may prepare reconciliation more regularly, say weekly or even daily, rather than at the end of accounting year.

For those maintaining accounts in Tally, the process of bank reconciliation gets quite simplified due to the features of Tally. There are options to prepare BRS manually, and also to activate auto preparation. With just a couple of clicks, a user can choose the bank account for which reconciliation needs to be prepared, select the bank statement, and Tally would prepare a BRS automatically by comparing entries in bank book with line items in the bank statement.

To learn about various features of Tally including how to prepare bank reconciliation statement, you could enroll with Super 20 Training Institute which offers some of the best Tally courses in Ahmedabad.

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Adjustment entries in Tally for accruals and advances

As most of us would be aware, matching principle is one of the most…

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Adjustment entries in Tally for accruals and advances

As most of us would be aware, matching principle is one of the most important principles of accounting. In simple words, it prescribes that all expenses and revenues related to the accounting period should be mapped / accounted for in that accounting period itself. (You could learn in more detail in accounting classes at S20). 

Having said that, there are times when expenses may be paid in advance or revenues may not have been booked. This calls for adjusting the books of accounts with appropriate accounting entries to reflect the true picture that pertains to that particular accounting period. It is here that the adjustment entries come into play. 

Adjustment entries could be on account of two factors: Accruals and Advances. These instances are explained below, alongwith accounting entries to be passed for the same in Tally. These adjustment entries are passed as Journal Vouchers in Tally.

  1. Accruals
    • Expense Accruals
      This represents expenses incurred (say on account of goods purchased or services availed), however not yet accounted for (maybe because invoice has not been received). For example, accounting period is April – March. Electricity bill for March is received in April of the following year. Since electricity has been consumed and expenses have been incurred in the true sense, the same should be accounted for in that year ending 31 March as well. When accruing expenses, the expense account would be debited and instead of sundry creditors, credit is taken to provision for expense account / expense payable account. Thus, accounting entry in Tally would be:
    • Income Accruals
      This represents income accrued/ earned but not recorded, mostly because it is not due.For example, billing cycle agreed with the customer is 3-monthly beginning February. Therefore, while services would have been rendered for February and March, but invoice cannot be raised until April as the right to collect arises only then. As per matching principle, revenue corresponding to the months of February and March should be accounted for. When accruing income, the income account would be credited and instead of sundry debtors, asset account namely income accrued but nor due is created. Thus, accounting entry in Tally would be:

      Having passed afore-said entries, the profit and loss account would now truly reflect the revenue and expense for the accounting period.

  2. Advances
    • Expenses Paid In Advance
      When expenses are paid for a period falling outside the accounting period, books should be adjusted to capture only the amount that pertains to the accounting period for which books are being prepared.For example, annual insurance of Rs. 12,000 is paid in December while the accounting period followed is April – March. In that case, Rs. 8,000 pertaining to April – November of the following year should be excluded from the profit and loss account. This could be done as under:

      Thus, net insurance debited to P/L for the year would be Rs. 4,000 only, pertaining to the period December – April.

    • Incomes Received In Advance
      Contractual terms may require the customer to pay advances upfront. In case where such advances do not get settled within the accounting period under consideration, they should appear as liability account. For example, for a contract signed in March, advance received from customer for the quarter is Rs. 30,000. Assuming April – March year is followed, once services are rendered in March, proportionate part would go to revenues. However, remaining advance should continue to stand as a liability in the books. Entries would be as under:

      Thus, at year-end, only revenue of Rs. 10,000 would go to P/L while net advance of Rs. 20,000 would appear as a liability in the Balance Sheet.

      While this is the gist of the journal entries, a more step by step approach for accounting in Tally can be learnt at accounting classes at Super 20 Training Institute in Ahmedabad.

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Components of GST: CGST, SGST and IGST

In India, the Constitution provides rights to both Centre and the States to levy…

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GST - Goods & Service Tax

In India, the Constitution provides rights to both Centre and the States to levy and collect taxes. GST has been introduced as a substitute for old levies – central levy of customs, excise and service tax and state levy of VAT. It is therefore only fair that states should also have a share in GST collections, and that the entire levy should not go to the Centre’s kitty. It was in fact for this reason that the law could not be implemented earlier for a long time until the Centre and all States reached a consensus.

However, now that the law is applicable, it is levied by both Center and States simultaneously. This is in sharp contrast to the erstwhile regime, considering that the taxes were levied separately and in fact had cascading effect. GST is applicable based on place of supply and nature of supply. Detailed principles can be studied at some good GST classes. Meanwhile, if one were to put it in simple terms, it is applicable in the following manner:

  1. When it is an intra-state supply – CGST and SGSTWhen goods/ services are supplied within the same state, Central GST and State GST are levied. Seller must collect both from the buyer and as the name suggests, CGST is deposited with the Central Government, while SGST is deposited with the State Government. Both these components are governed by separate legislations – Central Goods and Services Tax Act, 2017 and separate SGST Acts of various states.As for Input Tax Credit, it can be availed against the output liabilities as under:
    1. CGST liability can be paid using:

      1. first, input tax credit under CGST
      2. then, input tax credit under IGST
    2. Similarly, SGST liability can be paid using:
      1. first, input tax credit under CGST
      2. then, input tax credit under IGST

     

  2. When it is an inter-state supply – IGST

When the goods/ services are sold from one state to another, Integrated GST is levied. It is to be deposited with the Central Government. It may be mentioned here that the governments do apportion amongst themselves (Centre and states), however that is not relevant from the seller’s perspective who has to pay it to the Central Government. 

The afore-said rules apply to imports and exports too, and even where the supply is from or to an SEZ unit. 

IGST is levied under Integrated Goods and Services Tax Act, 2017.

Input Tax Credit can be availed against output IGST liability. The order to be applied for paying IGST liability is:

  1. First, utilize input tax credit under IGST 
  2. Then, utilize that under CGST 
  3. Then, utilize credit under SGST 

Hope the above provides a good overview of the basics. For deeper understanding of the concepts with examples, you could subscribe to GST course at Super 20 Training Institute in Ahmedabad.

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All About Deferred Tax – What You Need To Know

Contrary to its name, deferred tax is actually an accounting concept. It is governed…

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deferred tax simplfied - what you need to know

Contrary to its name, deferred tax is actually an accounting concept. It is governed by Accounting Standard 22, which is studied as part of course curriculum of most accounting classes.

In reality, deferred tax is not any form of tax expense paid/payable to the government. It represents accounting for difference between tax expense as per books and as per tax return filed by a taxpayer entity.

Differences in tax expense as per books and as per tax return could occur on account of various reasons, for example the rate at which depreciation on certain asset is accounted for in books may be higher/lower than what is permitted as per income tax law. Another example could be donations made by the company – while they are recorded as expense in profit and loss account, they are not an allowable deduction while computing taxable income.

All such differences are to be classified as either timing difference or permanent difference. Timing differences are those which will get reversed in the future. However, permanent differences are those which, as the name suggests, are permanent in nature and will not be reversed in the future. In the above example, while the book depreciation rate may be different than tax depreciation rate, the cost of asset would eventually be depreciated in entirety in both books and tax records. It is merely that the period over which it is depreciated will differ. Hence, it would qualify as timing difference. On the other hand, donation is never allowed as an expense and therefore qualifies as a permanent difference.

Deferred tax is recognised only on timing differences. Depending upon the nature of timing difference, either a deferred tax asset is created or a deferred tax liability is recognized in a financial year. Every year, the position is revisited and the deferred tax asset or deferred tax liability may be reversed depending upon the calculations made.

When there is a disallowance / addition to Profit before tax in tax return, deferred tax asset is created. When additional deduction / allowance is claimed from Profit before tax in tax return, deferred tax liability is created. Instead of mugging it up, whether an asset is to be created or liability, can be understood in logical terms as under:

  • When a disallowance / addition is made in tax return vis-a-vis the expense booked in books, it implies that taxable income is higher in current year, i.e. tax paid is higher now, thus lower tax would need to be paid in future, hence recognize an asset now.

  • Conversely, when higher deduction is claimed in tax return vis-a-vis the expense booked in books, it implies that taxable income is lower in current year, tax paid is lower now, thus higher tax would need to be paid in future, hence recognize a liability now.

Accounting Standard 22 provides for various other aspects related to deferred tax recognition as well, such as:

  • deferred tax is to be recognized at enacted or substantively enacted rate as on balance sheet date
  • deferred tax asset is recognized when there is ‘virtual certainty’ that the asset can be reversed in the future
  • deferred tax getting reversed within the tax holiday period should not be recognized

This might sound like too complicated and confusing, but if one were to think logically, the concept of deferred tax is pretty simple. Accounting classes at Super 20 Training Institute can help you learn complex accounting concepts such as these with ease.

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All About Assessment Proceedings

Every democratic country has three wings – the legislators, the administrators, and the judiciary.…

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Assessment Proceedings

Every democratic country has three wings – the legislators, the administrators, and the judiciary. As has always been the case with any law, once it is enacted by the law-makers / legislators, it is expected that the public at large must abide by it. In order to ensure that the law is being followed, there are administrators, and in case of disagreement between the two, there is judiciary to resolve these issues.

Background

In the context of income tax as well, the law (Income Tax Act, 1961) has prescribed a set of rules and compliances. It is expected of people to honestly follow the same. At the same time, an administrative body – the Income Tax Department – has been set up in order to ensure correct implementation of the law. 

Once a tax return is filed by a taxpayer, it is picked up for processing. It may be accepted as it is. On the other hand, should the department feel the need, it can make some inquiries from the taxpayer regarding various incomes declared / not declared by him. These inquiries are conducted as part of assessment proceedings. The law provides for various kinds of assessment proceedings, the manner in which they must be conducted, and the time frame within which they must be initiated and completed. A good knowledge on the subject can be gathered from commerce course at Super 20 Training Institute. Nevertheless, an overview is provided below.

Types

The main type of assessment proceeding is Scrutiny assessment. Some key aspects are:

  • Requisite notice must be issued in order to initiate the same
  • Such notice can be issued within 6 months from the end of the financial year in which return is filed
  • The time frame to complete this assessment is 21/ 18/ 12 months from the end of the assessment year (depending upon which year’s assessment it is) 

Scrutiny assessment is clubbed with other provisions of the Income Tax Act in certain situations, such as:

  • Best judgment assessment: when the taxpayer doesn’t cooperate / submit information, the tax officer can make an assessment on the basis of information available with him
  • Section 148 assessment: when the income considered to have escaped assessment exceeds specified limits and the afore-said time period of 6 months to issue notice has expired
  • Block assessment: when search / survey has been conducted, and assessment proceedings of multiple years are to be pursued on the basis of evidence collected during such search / survey.

How is scrutiny assessment conducted?

Once a notice is received, it is usually accompanied by a questionnaire seeking information as the tax officer may deem fit. The assessee must prepare a response and appear before the tax officer with all explanations. In case there is no questionnaire, the tax officer may ask for information during the course of discussion. The assessee can always seek some time which he thinks he will require to collate the details. If the tax officer considers the request reasonable, he would allow the assessee to come back with answers at a later date. Such back and forth may continue until all queries are responded to and tax officer has no further questions. 

More recently, the department has been moving towards e-proceedings, which implies that all responses to the inquiries raised can be responded over email, and do not require the assessee to be present in person. This has turned out to be a sincere blessing for all taxpayers, since it saves significant effort, time and paper, and even rules out any chances of harassment of any kind.

What happens after?

It is not necessary that the tax officer may agree with all the explanations furnished by the assessee. In case he is not satisfied, he may make suitable adjustments to the taxable income of the assessee for that year and raise demand for any shortfall in taxes paid, basis such revised income computed by him. 

If the taxpayer does not agree with such assessment, he can approach the higher authorities to appeal against the assessment so completed and the matter can be argued by both parties (taxpayer and tax officer) for adjudication. 

You can learn more about assessment proceedings as part of taxation training given by Super 20 Training Institute in its Advanced Executive of Commerce course.

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What is Reverse Charge Mechanism under GST?

GST is an indirect tax, whereby seller recovers tax on goods / services supplied…

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GST is an indirect tax, whereby seller recovers tax on goods / services supplied to the buyer, and then
deposits the tax so recovered to the Government of India. While this is the primary way tax is collected
and paid, there is an exception to this mode, namely reverse charge mechanism.

Under reverse charge mechanism, the buyer of goods / services is required to deposit GST directly to the
tax authorities, and the seller need not collect the tax, nor undertake any related compliances.

These principles can be understood in detail when you join GST classes at Super 20 Training Institute.
However, a brief is provided below to get you started.

History and Genesis

Following the normal process (also referred to as the forward charge) may still leave some
transactions untaxed. In a country as vast as India, with unorganized businesses, reverse charge acts
as an effective mechanism to plug the loopholes and implement the law.

Reverse charge mechanism existed in the pre-GST era as well, i.e. in the service tax regime.

Applicability

Liability to pay tax on the buyer / recipient of goods and services arises under the reverse charge
mechanism under the following scenarios:

(i) Based on nature of goods / services supplied, or nature of supplier
Some examples are:
– supply of a service by a non-resident to any person in India
– supply of legal services by an advocate to any business in India
– supply of services by a director of a company to the company in India

(ii) Where a taxable supply is made by an unregistered dealer to a registered dealer [applicability
deferred to 30 September 2019]

When a registered dealer procures a taxable good or service from an unregistered dealer, the
liability to pay GST shifts to him under reverse charge mechanism and he is required to pay GST,
instead of the unregistered supplier. The exception to these cases is when the total procurements
by the registered dealer in a day do not exceed Rs 5,000 (whether from one or all unregistered
suppliers).

The above list is only indicative and not exhaustive. You could learn more at Super 20’s GST classes.

Further, where reverse charge mechanism is applicable, GST would need to be deposited on any
advances paid to the supplier too.

Compliances required / Other aspects

A recipient required to pay GST under reverse charge mechanism must obtain GST registration and
undertake all compliances like any other registered dealer.

GST under reverse charge mechanism needs to be paid in cash, and input tax credit cannot be used to
pay the same. However, once paid, input tax credit can be claimed against GST so paid. The exception to this is the case of a GST composition dealer who is generally not allowed to claim input tax credit,
and therefore cannot claim credit of taxes paid under reverse charge mechanism either. Further,
when a composition dealer has to pay GST under reverse charge mechanism, he must pay at full rates
(and not at lower rates applicable to him).

One more important aspect is the Time of Supply – the point when GST is payable. This differs under
reverse charge mechanism from the usual principles under forward charge.

Of course, there are many more technicalities to these provisions. If you have any queries, do reach out
to us and we could guide you further with the right set of GST training that you should opt for,
considering your background, experience and future plans. Super 20 Training Institute offers the best
tax course and would be just the right choice for this purpose.

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The Benefits Of Learning Accounting Via An Institute

Accounting is no more simply limited to maintaining bookkeeping, profit and loss and balance…

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best accounting course in ahmedabad

Accounting is no more simply limited to maintaining bookkeeping, profit and loss and balance sheet. As many companies now turn global, the transactions get more complex. Therefore, an accountant is now expected to possess the knowledge of how to handle such intricate transactions. Even the local companies are now in a dilemma as to how to handle the accounts after the launch of GST.

Every now and then we hear of bankruptcy of highly reputed banks. The ability to detect such fraud at an early stage is also what one expects out of an accountant. Lot of job opportunities are out in the market and unfortunately very few are well qualified for it. 

Possessing a degree is one thing but to be able to practically handle the transactions is where the actual skill is. If you aspire to be one of those rare but an accountant with exceptional skills, one needs to know what is beyond the books. That is where the catch is! 

Super 20 is one such institute that offers accounting courses in Ahmedabad and other various courses for all who are eager to learn about accounting and related courses.

The following are the key features which are offered by S20-

  • Accounting 
  • GST
  • Taxation 
  • Tally
  • Banking and finance
  • Courses for basic learners, experienced and advance learners
  • Communication skills, personality development, computer skills

What are the benefits of enrolling yourself with for Super20 courses?

  • Expert faculties

They claim all their faculties are qualified Chartered Accountants with expert knowledge. Learning directly from the experts mouth eradicates the chances of errors and provides conceptual clarity on the fundamentals.

  • Step by step approach and customized courses

Super20 courses take you step by step from basic level of courses to advanced level. If someone wants to skip the basic level, he can directly take up the advanced level course to get updated with technical concepts after clearing some procedures.

  • Real life case studies

As discussed above, S20 aims at learning the practical way i.e., without the books. This helps the students to crack the real corporate world scenarios way before they enter the corporate world. This makes them confident when they join their job or speak to their clients.

  • Doubt solving

The faculties are completely dedicated to each and every student and take keen interest to solve their doubts whether small or big. The focus is on bringing conceptual clarity and confidence in each student.  

  • Reasonable fees

Their fees are reasonable compared to many other institutes. Also, one doesn’t need to pay again if at all he is unable to grasp the course in the given period. Super20 courses are supremely beneficial for slow learners.

  • Communication skills and personality development

S20 makes sure that when you leave their premise, you are fully prepared to enter the corporate world, which is why they offer special course on communication skills and personality development.

  • Confidence

The Super20 courses are a combination of such courses which guarantees confidence to the student. One is able to handle the complex transactions like Merger and Acquisitions, accounting of international businesses by Indian company, etc.

  • 100% placement assistance

They provide a 100% placement assistance to provide you with job once you finish the course.

  • Focus on developing practical sense and skills

By providing lectures on corporate banking, various businesses, structure of the economy and likewise, the student is carved for their entrepreneur drive.

  • Career guidance

After completing the course, one may be confused whether to opt for a banking job or work with a manufacturing company or start his own business. S20 provides counseling laying down the pros and cons in each of them.

  • Learning made enjoyable for youngsters

The faculties try to make the lectures interactive and lively so that they don’t get bored. Also they are introduced with certain computer related skills.

  • Free demo

Don’t think much. Just go for a demo lecture before joining in. See if you are able to connect with the faculties’ way of teaching, and then decide to go for it or not.