Skip to main content

Compliances have costs involved – Clients need to understand




A professional who is directly or indirectly related to the financial world certainly has one question. Am I charging sufficient for the services I am offering? His thoughts over the question become more intense especially in Tier II and Tier III cities of India. With advent of Goods and Services Tax and frequent changes in the tax and corporate laws, it is high time that clients start understanding that compliance involves cost, it doesn’t come for free. Client is always wondering why I am paying so much for mere compliance job. And the same client would not even think twice before spending huge amounts on their personal needs.  It is in the interest of both the professional and the client to understand that higher the remuneration paid for compliance, easier would be the life for the client. Times have gone when businesses used to run like “Baniye ki dukaan” who believed in retaining everything close to their chest.

Most of the regulatory bodies have released the minimum prescribed fees for various jobs which a professional might undertake for his clients. But they are hardly followed. Client shows that sarcastic smile when shown these rate cards, as if they are just meant for mental satisfaction only. He is sceptical to pay the fees, not because he does not trust the professional but because he knows that once his neck is held by government official, he would have to shell out more. With the emergence of IT in most of the government departments including taxation, the possibilities of client spending more on corrupt practices will drastically reduce. In this e-assessment world, he should realise the understand the importance of compliances by paying a worthy amount to a professional who executes it. There needs to be a balance even at the end of the professional as well. He must ensure that if he deserves a good amount of fees, client also deserves a good quality service.

Every economy transforms and maybe 21st century will witness the transforming Indian economy. Without the compliance of law and maintenance of proper records by the taxpayers, it would certainly be difficult for us to overhaul our  business activities. It would not be wrong to say, that the way government is forcing compliance (obviously for good reasons) the accounting and compliance solutions would start getting their worth. It’s the need of the hour that regulatory professional bodies and industries come together in working out fees-work balance.   

Comments

  1. neusourcestartupmind17 February 2020 at 02:04

    Hiii..I really appriciate you for posting this kind of blog. Visit our website for Compliances under GST

    ReplyDelete

Post a Comment

Popular posts from this blog

GST Registration in case of Renting of Immovable properties:

GST Registration in case of Renting of Immovable properties: By CA. Keshav R Garg 1.      Let us first understand that the place of registration is decided by the term place of business as defined by section 2(85) of the CGST Act 2017. As per the definition of “Place of Business” it is a place from where the business is carried on and/or where a warehouse or any other place for storage of goods is located and/or books of accounts are maintained and/or the business through agent is carried on. It nowhere considers “place of supply” for determining the Place of business for the purpose of GST Registration. Hence, place of supply has no impact as far as GST Registration is concerned. 2.      As per section 22 of the CGST Act 2017, a person is liable to take registration from the place he makes a taxable supply. There is a distinction in place of supply and place from one makes taxable supplies. Place of supply is derived to conclude the state where the tax would be allo
58 comments
Read more

Renting of Warehouse for Agriculture Produce – Taxable under GST

In the case of Rishi Shipping – Gujarat Authority for Advance Ruling has cleared the air that Storing/warehousing and renting of immovable property are two different type of services. Merely because the agricultural produce is stored in an immovable property it would not classify it as Storage and Warehousing Services. Therefore the same shall not be covered under S. No. 54 of Negative List (Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017), hence taxable under the purview of CGST and IGST Act. The Authority held that in order to classify a service as Storage and Warehousing, it should be coupled with loading/unloading/packing services etc. The authority was of the view that where mere building is let out, it shall be classified as renting of immovable property which is chargeable to tax. It is the composite supply, principal supply being renting of immovable property for storage of agricultural produce which is exempt from tax. It further held that once the
19 comments
Read more

GST IMPACT ON DIWALI GIFTS

With Diwali round the corner and GST being implemented, the businesses are in a state of confusion as to what would happen to tax paid by them during the purchase of Diwali gifts. Various questions like whether such gifts are eligible for claiming input tax credit? Are these gifts used in the course or furtherance of business? How the invoices should be taken for these gifts. These questions are but obvious because Diwali is one occasion where business tries to fulfil all its obligations towards vendors, customers, government officials, consultants etc. As per section 16 a taxpayer is entitled to take credit of input tax charged on any supply of goods or services to him which are used in the course or furtherance of his business.  Therefore at the very first instance, we need to understand, what is in the course or furtherance of business. Course of business means usual business practice such as manufacturing, trading etc. It implies those transactions which are directly relat
19 comments
Read more