Outsourcing GST and Accounting work in Faridabad , Gurgaon, NCR Delhi

Finsys Infotech Limited has two Divisions : One makes ERP Softwares and Implements it. And Second Helps the clients with complete Solution for Accounts, GST, TDS, Balance Sheets, Outsourcing of Accounts.

We are a team comprising of Multiple Chartered Accountants, and Multiple Company Secretaries, and about 40+ other members, all working from a Single Corporate Office at Crown Plaza Mall, Sector 15A, Main Mathura Road, Faridabad, Haryana ( NCR Delhi)..

We are just 7 km from Delhi border, 22 km from Nehru Place, and 37 km from DLF Cybercity, Gurgaon.

Our biggest area of interest is our Accounting BPO. We might be one of the top 10 Accounting and Taxation BPO of Faridabad,

Here we serve various Corporate Customers with Total Aggregate Turnover of about Rs 1,000 Crores per annum ( Financial year 24-25). And we at MLG Team handle their every Accounting Dept work, from Data entry, to Bank Reconciliation, to GST returns, to TDS payments, to Cheques / NEFT / RTGS Preparation, to Balance Sheet Finalisation, to submission of all details to the External Auditors and replying to Letters and Notices from Tax Authorities, when required.
Our Business is based in Faridabad, NCR-New Delhi. We serve our patrons with consultancy in matters relating to Income Tax, Stock Audits, MIS Reports,  Internal Audit, Company Law Matters, FEMA advice, RBI Matters, GST Matters, Corporate Accounting BPO, and the like.

We are giving BPO KPO Accounting Services to clients at Faridabad, New Delhi, Gurgaon, Noida, Ghaziabad, Sonepat, Bhiwadi, Bahalgarh, Bahadurgarh, Vapi (Gujarat), Pune( Maharasthtra), Kanchipuram ( Chennai, Tamil Nadu ) and Dharuhera ( Rajasthan).

We serve our patrons with consultancy in matters relating to Taxation, Income Tax, Company Law Matters and the like.

We provide services like
Income Tax Consultancy
GST Replies , Returns and consultancy
Handling Income Tax Scrutiny cases
Stock Audit

Filing Returns (Individual, company etc)
ROC matters : Company Formation and Returns etc
Handling Accounting Outsourcing, with complete package of Solutions

Ideas in Agreement for Outsourcing of Accounting Department work

• Benefits expected to CUSTOMER
  1. Much Higher level of Reliability –
     1. Reliability of Reports
     2. Reliability of Purchase bill passing

• Ontime payment of all telephone bills , credit card bills, insurance payments

1. Reliability of Purchase bill passing,
2. Daily MIS reports on sales, collection, payments,
3. Daily bank reconciliations
4. Better quality of integrated accounting, with all locks as possible in FINSYS ERP

• Special Benefit of this assignment and business method
  1. Monthly top level meetings at Factory / Customer HO
  2. Over powerpoint presentations
  3. Reviewing,
     1. What was done ?
     2. What was not done ?
     3. Where are we ?
     4. Where are we going , (direction ) ?

• Companies included
  1. One company and one factory of CUSTOMER only

Scope of Work : Inclusions

• Inclusions : Scope of work  :
  1. Data Entry for Financial Accounting of the day to day vouchers into FINSYS software – Accounting Module. As per details in next para.
  2. Preparation of the Annual Profit and Loss Statement and the Balance Sheet, commencing with the financial year 2019-20.
  3. Preparation of the regular Monthly MIS reports for the Financial Accounts, including short Profit and Loss Statement.
  4. Preparation of TDS returns
  5. Preparation of calculations for TDS monthly payments challans.
  6. Preparation of GST returns GSTR1
  7. Preparation of GST returns GSTR-3B
  8. Bank Reconciliation on regular basis.
  9. Cheque preparation ( if NEFT / RTGS is not in place)
  10. Online payments to be done by CUSTOMER commercial team.
  11. Finsys shall do the preparation for the NEFT / RTGS online request. However, “checker” / “approver” on the bank website/software will be responsibility of CUSTOMER
  12. When requested, advising staff on the maintenance of the proper supporting and better ERP utilisation in materials and purchase dept also … as far as it related to better vendor bill passing + controls.
  13. General tax consultancy and Advice as requested from time to time.

• Note regarding Purchase Bill passing
  1. Finsys work include Purchase, Journal Vouchers, Imprest Vouchers, Cash, Bank, Debit Notes, and Credit Notes. Basically, all financial vouchers.
  2. Note : All Purchase bills shall be passed by Finsys team based on the “Commercial passing” by the CUSTOMER Team
  3. CUSTOMER team shall do this passing by its internal system of “approved” PO and “approved” MRR. Further they must be QC passed. Only then the bill will be passed in Accounts by Finsys Team. In case of problem, the Finsys team will raise the Query to the Commercial Dept. …
  4. All these processes are inbuilt in Finsys ERP. Finsys team will obey the process and shall help CUSTOMER team follow this strong process. This is the way any organized process Driven MNC works.

• Note regarding Sales Bill / Invoices
  1. They are created automatically in the FINSYS ERP package based on the Invoices made by the Despatch team.
  2. Hence no requirement
  3. However Finsys TEAM shall do a proper audit of each bill
  4. Physical copy vs online record…. To highlight variation if any ( rare, but possibility is there due to user editing. Hence this is a internal audit process Finsys follows )

• Note regarding Indirect Expenses / Overheads Bill passing
  1. The CUSTOMER commercial dept will “pass/sanction” these bills, and give to Finsys team.
  2. Responsibility of Finsys team shall be limited only to “data entry” of these.
  3. Example: Telephones, staff imprest vouchers, staff conveyance, credit card statements, petrol bills, business promotion, foreign travel, electricity, water, staff welfare.

• Note regarding onsite accountant
  1. As of now
     1. Nil, ( Excluded ) ( can be arranged on extra basis )
     2. Cash payments, and emergency cheques will be prepared by the CUSTOMER Commercial department.
  2. Suppose person is added onsite.
     1. In case he is on Finsys Rolls, his scope of work will be emergency cheques preparation, arranging the information to the other departments, that is required then and there. Helping in customer account reconciliation / vendor account reconciliation / staff advances / staff imprest bill passing etc
     2. If work is more than time available for a normal person’s work, then additional manpower can also be deputed onsite, extra basis.

• Note regarding MIS Reports
  1. Finsys team shall provide the pre-agreed reports on a daily / weekly / monthly basis.
  2. Some of these reports are based on the data that is currently not available. And this may take time. Hence some reports will start in the first month, some in second month, and other reports over a period of time.

Scope of Work / Sharing of Work :

Relationship with Other Departments

• GST dept activities
  1. Preparation of GST return 3B = Finsys
  2. Preparation of GST return R1 = Finsys
  3. Preparation / calculation of GST Challans = Finsys
  4. But going to Department for any Forms / Physical meetings / On road Challan due to any vehicle being caught = in CUSTOMER Scope
  5. E Way bill will be generated by CUSTOMER Team.

• Work by Banking team
  1. Accounting by Finsys
  2. Reconciliations by Finsys
  3. Funds allocation internal with CUSTOMER
  4. Cheque making + printing + cellotape by Finsys ( for safety from frauds )
  5. Cheque release planning by CUSTOMER
  6. Bank meetings and renewals and negotiations, by CUSTOMER

• Exclusions : Materials Inwards / Outwards / Issue entries / stocks
  1. The Stores / Purchase / Sales departments shall do their own respective work, and Stores accounting is not included

• Exclusion : Commercial Department
  1. Finsys team shall be dependent on the commercial CUSTOMER dept for the following
     1. Work of Cashier.
     2. Day to day going to Bank / Deposit of Telephone bills, Electricity, Credit cards etc.
     3. Day to day going to Customer / Vendors / service providers.
     4. Customer Account Reconciliation / Vendor Account reconciliation.
     5. Courier / Person who will take documents to Finsys office on daily basis.
     6. Day to day meetings with customers or vendors for any purpose whatsoever.

• Work of Payroll / Salary Dept
  1. Model A
     1. Inclusion with Finsys
        1. The important task of TDS on salaries by Finsys, is a part of accounts department outsourced to Finsys
     2. Exclusions
        1. All other work in HR Domain by CUSTOMER team
     3. Model B
        1. All activities in Model A plus the following
        2. Usually every company has an internal HR department, so these tasks as done by them. However, in case that is required, then as a separate assignment, we can add the following inclusions too.

• Inclusion with Finsys in model B
  1. Salary Preparation, by Finsys
  2. Letter to Bank for Salary Transfer. Finsys
  3. ESI, EPF, welfare fund returns by Finsys
  4. TDS on Salaries by Finsys

1. Exclusions
   1. Time office
   2. Appointment letters, increment letters, HR procedures, penalties.
   3. KRA / Job Descriptions , job monitoring, admin duties of any kind.
   4. And all other work
   5. Current plan is for Model A
   6. For knowledge, the Finsys team can work on Model B, with an extra financial contract. So, excluded for time being

• Other Exclusions :
  1. These jobs are currently excluded for this contract. However, Finsys team can help organize professionals directly/indirectly to handle the same on extra basis.
     1. Going to GST / income tax offices for scrutiny or any work that is currently being handled by other consultants.
     2. Work of other departments like Procurement Planning, Purchase, Sales, Stores, Despatch, Quality, etc. These departments shall continue their duties.
     3. ROC Minutes book, detailed shareholders registers, and all ROC Records.
     4. Cost Accounting books, all Cost Accounting Records and Cost Audit.
     5. Fixed Asset Registers.
     6. Personal accounting & Personal Balance Sheet / Income tax returns, of the Directors family members.
     7. Any other matters not in scope para.
     8. All out of pocket expenses are on CUSTOMER account ( if any ).

• Statutory Auditors / Tax Auditors
  1. Existing CA’s may continue as it is
  2. Finsys shall submit all required accounting information as required in normal statutory audit and normal tax audit as in previous years.

Contract Period

 Contract Effective Date

• 1. This contract will come into force, w.e.f. ____ ( date shall be filled in this template )
• Contract period
  1. Tentatively, the contract are with a horizon of 12 months. (One year ).
  2. It may be extended by mutual consent, on year to year basis.
  3. It may also be terminated at any time by either party with 3 month notice.

Exit procedure –

• in case of Notice to Finsys team to exit the contract
  1. During the Notice period, following process is to be done.
  2. Responsibilities of Finsys Team
     1. Finsys shall hand over all documents, vouchers, files, and soft copies of the required files to the new accounting firm / internal CUSTOMER team. This may include parallel handholding for this Transition period.
     2. Finsys shall give the suggested SOP’s to the new team.
  3. Responsibilities of CUSTOMER Team
     1. CUSTOMER shall create a capable team to take the handover.
     2. CUSTOMER shall clear all financial dues of the Finsys team, upto the notice date and for the Transition period.

Locations and Visits

• Locations of Accounting work
  1. Work to be done usually, at the office of the Finsys
  2. Meetings may usually be done at Customer office as per mutual convenience from time to time.
• Locations of Storage of Documents
  1. Voucher Files shall come back to CUSTOMER office at regular intervals, The CUSTOMER shall keep them safely in a proper commercial Warehouse for future safety.
  2. Usually vouchers will be returned after its relevant Quarter ending / Half year ending returns have been filed.
• Locations – onsite Deputed Accountant
  1. Not applicable / may be discussed.
  2. Customer will continue to retain at least one commercial accountant on site for the commercial activities as discussed.

for Commercials and other info, contact us

What things Finsys team can do and how ?

Like to Outsource your Accounting Headache to somebody ? Consider us. Your search might be over. And the Solution begins now.

Maintenance in Finsys ERP

Preventive Maintenance

Why you should do Preventive Maintenance?

1.Preventive Maintenance helps us in preventing the break down.

2.It’s important to record our maintenance team’s things like –

 What they are doing?

How they are going with their workings?

How finsys is helping you?

1.

Finsys has a option named Planned Maintenance which helps us to plan that which equipments we required to go in maintenance after production.

2.

This helps in synchronizing  of the production team and maintenance team about the equipments which will go for the maintenance by the android Finsys application’s notification on their smart phones.

3.

The senior member of the maintenance team now can mark the workings to his/her team mates and the members can follow up on the workings by notification on their phones.

Wishing Good Health for your Server during the “Long Holidays” for Diwali ( 31 October to 3rd November 2024)

( Those with server on the Cloud, may ignore this message. Since Cloud is always “on”)

Friends, This year 2024, we all have a rather long and happy Diwali festivities and also Diwali Holidays. They may extend to between 4 days to 6 days in some companies

Sometimes the Factory “Electricity Generator” is also “switched off”. And this leads to Electricity being switched off for over 2 to 24 hours to the server.

Effective Result : Server improper shutdown. And this may lead to Hard Disk Crash. Effectively your Server may CRASH.

Every year, we get news of server ‘crash’ from around 3 to 6 customers.

Server Crashes during Diwali are encountered usually due to long breakdown of power supply.

Team Finsys Wish you a bright and joyous Diwali.
May your festival of light celebrations be fun, safe, and spiritual.

We also need your kind attention on Backup Policy. Please take action before going to leave.

Question 1 =  Backup taken properly ? , Before going on leave ?
Ans. Must be YES. We strongly recommend this.

Ques 2 = Is your Manual or Auto backup saved offsite ( on google drive) ?

Ans. Must be YES. Note mere external hard disk is not sufficient.

Ques 3 = Are you Saving “Backup” on a Google Drive / One-Drive,  separately other than server ? Is it Working Fine ?

Ans. Must be YES

Ques 4  = Your U.P.S should have capacity of 24 hours ? Is it working fine ?

Ans. Must be YES

Ques 5 = Size of Backup is increasing gradually regularly ? There is no erratic reduction ?

Ans. Must be YES.

Take Precautions and have a Happy Diwali

We wish you the Seasons Greetings and Happiness, and Prosperity, always. We in India love our Diwali festival. Let us enjoy and make our Country and our World Stronger, Happier always.

Prevent server Crash during Diwali holidays Finsys ERP guideline advisory. Links www.finsys.co.in and www.finsys.in, and www.finsys.biz

( Those with server on the Cloud, may ignore this message. Since Cloud is always “on”)

Going on a Long Diwali Festival Holiday. Before you start your holiday, do these 4 things for server safety and data safety. Finsys Advisory.

Helpline numbers during the holidays : 9015220220 – Dial  1 or 2

Things to remember while  adding Scrap invoice in any ERP software:

1.Keep track of the scrap while production-the proper moment and conversion of rejection should be done.

2.

Documentation and signing of the hard copy

of the scrap voucher (conversion process) should be done.

These points make it ready for the permanent audit.

External Reasons

1.GST-The scrap created while production should be sold in market as the sale of scrap is liable to output GST on applicable rates i.e.,5% or 18% according to scrap.

2.TCS-TCS collection should be done as under Income tax.

Internal reasons

1.Keep check on the scrap if its purely a scrap or a part of raw material.

2.Logical rejection should be addressed and signed.

RCM – GST on Metal Scrap Purchase from Unregistered Persons,

Also TDS Starts for  Same Metal Scrap Purchase from Registered Suppliers

This is a Big News. First Time Ever. Govt has started 2% TDS on Purchase of Metal Scrap from Registered Persons.. + Also RCM GST on Purchase from URP

Note there are TWO separate NEW ITEMS…. they are related but NOT SAME.

We start with the First one : RCM

This has come up with the introduction of Notification No. 06/2024-Central Tax (Rate), dt 8th Oct 24

All businesses involved in metal scrap PURCHASE should take immediate steps to comply with the reverse charge mechanism provisions.So, Starting from October 10, 2024, registered persons purchasing metal scrap from unregistered sellers must ensure that the appropriate GST is paid under RCM.

Notification No. 06/2024-Central Tax (Rate): Amendments to GST on Metal Scrap

Date of Notification: October 8, 2024
Notification No.: 06/2024-Central Tax (Rate)
Effective Date: October 10, 2024
Issued by: Ministry of Finance (Department of Revenue), Government of India

Key Dates:

The metal scrap industry often involves transactions between unregistered suppliers and registered businesses. By mandating that registered recipients must pay the GST under RCM, the government aims to bring more transparency and compliance to this sector, preventing revenue leakages.

The source of this is the Recommendation of the GST council in 54th Meeting

The 54th GST ( Goods and Services Tax ) council meeting held on 9th September 2024 has recommended 2% TDS on the supply of metal scrap by registered persons in B to B supply. It had provided the clarifications on the RCM. The meeting was presided by the Finance minister Nirmala Sitharaman.

The Council has recommended the introduction of the Reverse Charge Mechanism (RCM) on metal scrap transactions

Under this new provision, when a metal scrap supplier is unregistered AND HE supplies to a registered entity,the recipient (buyer) will be liable to pay tax under RCM.

This is to bring these transactions in GST Net…. Since the unregistered Scrap dealers were slightly a GREY AREA

New Accounts required in your Finsys ERP / Tally / any Accounting package

Either create Three new accounts to create in your books

CGST RCM Payable ( Scrap )

SGST RCM Payable ( Scrap )

IGST RCM Payable ( Scrap )

CGST RCM ITC Receivable ( Scrap )

SGST RCM ITC Receivable ( Scrap )

IGST RCM ITC Receivable ( Scrap )

or you can continue with your current generalised RCM Accounts also… if you can manage with them

Specifically, under the new amendment, unregistered persons selling metal scrap (falling under categories 72, 73, or 81) will be subject to the reverse charge, meaning the registered buyer will be responsible for paying the GST instead of the seller.

Read more at: https://taxguru.in/goods-and-service-tax/gst-reverse-charge-mechanism-rcm-metal-scrap.html
Copyright © Taxguru.in

Source Links

Link 1 : Govt GST Site : https://taxinformation.cbic.gov.in/view-pdf/1010100/ENG/Notifications

Link 2 : https://taxguru.in/goods-and-service-tax/gst-reverse-charge-mechanism-rcm-metal-scrap.html

Notification No. 06/2024-Central Tax (Rate) | Dated: 8th October, 2024 G.S.R. 614(E).— In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), notification No. 4/2017-Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub­section (i), vide number G.S.R. 676(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, after S. No. 7 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: – 2. This notification shall come into force on the 10th day of October, 2024. (1) (2) (3) (4) (5)

“S No 8.

Chapters 72, 73, 74, 75, 76, 77, 79, 80 or 81 Metal scrap

Seller = Any unregistered person

Buyer = Any registered person.

Now the second topic…… A new GST TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply.

Note : Income tax TDS will be zero upto 50 lakhs.. since this is not a service… and will be 0.1% after Rs 50 lakhs year purchase

But…. this GST TDS will start from Rs 2,50,000 per contract onwards…..

TDS of 2% to Be Applicable on Supply of Metal Scrap by Registered Person in Case of B2B Supplies | Notification

The CBIC has issued notification to provide that any registered person receiving supplies of metal scrap shall deduct TDS of 2% on B2B transaction. This notification shall be applicable from 10th October, 2024.

GST is in the eighth year of its implementation.  When the CGST Act was enacted in 2017, Section 51 contained the provisions of TDS. But this section was made applicable only w.e.f 01.10.2018. Section 51 of the CGST Act causes obligation on the recipient of the supplies (deductor) to deduct some percentage as tax at source from the payments to be made to supplier (deductee) and pay it to the Government.

Till now , upto now, from July 2017 to September 2024 ….. the provisions were made applicable only to government bodies and PSUs.

However, clause (d) of section 51(1) empowers the government to notify any other category for the purpose.

A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply.

NOTIFICATION New Delhi, the 9th October, 2024. No. 25/2024-Central Tax G.S.R. 629(E).— In exercise of the powers conferred by sub-section (3) of section 1 read with section 51 of the Central Goods and Services Tax Act, 2017 (12 of 2017), hereafter in this notification referred to as the said Act, the Central Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 50/2018-Central Tax, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R 868 (E), dated 13th September, 2018, namely:– In the said notification, (i) after clause (c) and before the first proviso, the following clause shall be inserted,-

“(d) any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from other registered person”;

(ii) for the third proviso, the following proviso shall be substituted, namely- “Provided also that nothing in this notification shall apply to the supply of goods or services or both, which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of Section 51 of the said Act, except the person referred to in clause (d) of this notification.”

>>>> means Registration is mandatory for the Supplier and he cannot take exemption under this 2017 notification

2. This notification shall come into force with effect from the 10th day of October, 2024. [F No. CBIC-190354/149/2024-TO(TRU-II)] AMREETA TITUS, Dy. Secy.

Note:- The principal notification no. 50/2018- Central Tax, was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R 868 (E), dated 13th September, 2018 and last amended vide notification no. 73/2018-Central Tax, number G.S.R 1250(E), dated 31st December, 2018.

Read more at: https://taxguru.in/goods-and-service-tax/gst-tds-applicable-metal-scrap-supplies.html#
Copyright © Taxguru.in

New Accounts required in your Finsys ERP / Tally / any Accounting package

Three new accounts to create in your books

CGST TDS Payable

SGST TDS Payable

IGST TDS Payable

And a New return to file every month GSTR7

name of this return is GSTR-7

And

Last date of GST TDS Deposit is 10th of next month

So, yes, GST TDS on Purchase of Metal Scrap if Regd vendor, and GST RCM if Purchased from Unregistered Vendor