We are happy to share you the checklist to be looked into for the compliances to be addressed regarding the financial year 2020-2021.
General Requirements :
- Books of accounts to be closed on or before 31/3/2021 and ensure that following points were considered before finalizing the accounts:
- Bank balance as per books should match with bank balance as per passbook.
- Cash balance as per books should match with physical cash held in hand at the year end.
- Cheques in hand as per books should match with physical cheques held in hand.
- Vendor and Customer reconciliation to be done with external report. Any deviations noted should be discussed with related customer / vendor.
- Provision entry, if any , should be properly passed in the books.
- TDS to be filed for Q1,Q2,Q3,Q4 within due dates.
- Income tax return to be filed properly on timely basis.
Basic and Statutory Requirements :
FOR INDIVIDUALS
- Form 16 to be obtained in case of salaried people.
- Ensure that bank Interest confirmation letter has been received from the bank regarding any deposits maintained thereto.
- If any shares were held by Individuals, share trading account confirmations to be received along with capital gains workings brought from the brokers.
- Regarding housing loan, obtain housing loan repayment schedule from bank including interest certificate for the same.
- In case of an Individual being director of a company having DIN number, ensure that e-KYC has been filed.
FOR LLP
- Form 11- Annual returns for LLP to be filed on timely basis.
- Form 8- Statement of Accounts and solvency to be filed on timely basis.
FOR COMPANIES
- DPT-3 for director’s loan and bank loan to be filed on timely basis.
- MSME form 1 to be filed for outstanding balances.
- Form AOC 4 (Filing of financial statements of the company) AND MGT-7 (Annual return of the company) to be filed on timely basis.
- Form ADT-1 (Intimation to registrar about appointment of Auditor) to be filed every year.
GST
Checklists for GST were specifically mentioned below:
- Ensure creation of new/unique invoice series of invoices to be raised from 01 April 2021. The series should be serially numbered.
- Physical stock need to be reconciled with the stock as per books of accounts.
- With effect from 01 April 2021, the requirement of mentioning HSN Code were as follows:
- Up to 5 crores turnover – Min 4 digits on all B2B supplies (Optional for B2C supplies)
- Above 5 crores turnover – 6 digits
- For exporters and few notified goods – 8 digits.
- Regarding Reversal of blocked credit , the companies are likely to decide about the writing off any inventory, if any during the year end closing by March 31, 2021. In such cases, ITC attributable to such goods shall be reversed.
- Letter of undertaking(LUT) should be in place for the upcoming financial year 2021-22 before 01 April 2021 so that the exports don’t get stuck at the last moment. Thereby make sure to have proper LUT for the concerned Financial year for your Export supplies.
- The last date to apply for refund of GST related to FY 2018-19 is 31.03.2021.
- Businesses having turnover above Rs.50 crores are required to generate e-invoicing. Therefore, the businesses should be prepared beforehand to avoid problems once e-invoice is implemented.
- QR code on B2C supplies by businesses having turnover above 500 crores is required to be printed from 01 April 2021. Non-compliance for the same from 01 April 2021 will lead them to be liable for penalty on all B2C supply wef 01 December 2020.
- Keep monthly reconciliation between purchase ledger vs GSTN portal
- The outward supplies as per GSTR 3B need to be reconciled with GSTR 1
- Reconciliation of GSTR 3B with the ITC on purchases to be done. If ITC in 3B is less than eligible purchase invoices, the same to claimed immediately but not later than the due date of GSTR 3B of September of next financial year
- Ensure that book entries were made simultaneously with GST corrections made.
- Ensure reconciliation of E-Way bills with GSTR – 1 and further with GSTR – 3B is properly done.
- Ensure reconciliation of GSTR 1/3B sales with Financial statements is properly done.
- Reconciliation of ITC ledgers as per GSTN portal to be made with the books of accounts.
- Ensure that reconciliation of GSTR 2A with purchases invoice to be done.
- B2B and B2C sales need to be reconciled with GSTR 3B/1 and with the books of accounts.
- Do cross check on income for which zero or partial GST is paid and do take corrective action.
Regarding GST, any corrections to be made with respect to transactions incurred in FY 2020-21 should be done before 20 September 2021. We suggest you consult with us once before proceeding to amend/correct/update the prior transactions.
Kindly get back to us for any assistance required on verifying the above mentioned points.