Is Monthly GST and Other Statutory Compliance Crushing You? 😓101

Here’s a detailed breakdown of LedgerVision’s Monthly GST and other statutory Compliance Reports and the associated penalties and interest calculations:

  1. TDS Compliance
  2. Non-Deduction/Short Deduction of TDS:
  • Report Details: The TDS scrutiny report provides a tabular view that includes the party details, TDS ledger, TDS category, TDS rate, expense amount, applicable TDS, and actual TDS. It also shows the status, indicating instances of short TDS, no TDS deducted, excess TDS deducted, or TDS deducted when not liable.
  • Interest and Penalties:
    • Interest: 1% per month or part of the month on the amount not deducted.
    • Penalty: A possible penalty equal to the amount of TDS not deducted, as per Section 271C.
  1. Disallowance under Section 40(a)(ia):
  • Report Details: The TDS P&L-wise report provides detailed scrutiny of TDS, both party-wise and expense-wise. The last column indicates the disallowance for non-deduction or short deduction of TDS.
  • Interest and Penalties:
    • Expense Disallowance: 30% of the entire amount of expense on which TDS was not deducted or deducted late may be disallowed in the computation of taxable income, leading to higher tax liability.
    • Penalty: The disallowed amount may attract a penalty under Section 271C.
  1. TDS under Section 194Q:
  • Report Details: LedgerVision provides a tabular report showing the applicable TDS under Section 194Q and the actual TDS in the tally data.
  • Interest and Penalties:
    • Interest: 1% per month or part of the month on the amount not deducted.
    • Penalty: Penalty under Section 271C equal to the amount of TDS not deducted.
  1. TCS under Section 206C(1H):
  • Report Details: A tabular report shows the applicable TCS under Section 206C(1H) and the actual TCS in the tally data.
  • Interest and Penalties:
    • Interest: 1% per month or part of the month for failure to collect TCS.
    • Penalty: A penalty may be imposed equal to the amount of TCS not collected.
  1. TCS under Section 206C (for Timber, Alcohol, etc.):
  • Report Details: A tabular report displays the applicable TCS under Section 206C and the actual TCS in the tally data.
  • Interest and Penalties:
    • Interest: 1% per month or part of the month for failure to collect TCS.
    • Penalty: Penalty under Section 271CA equal to the amount of TCS not collected.
  1. GST Compliance
  2. Wrong GST Entries (Input Credit Availed Incorrectly):
  • Interest and Penalties:
    • Penalty: Equal to 100% of the tax amount that was wrongly availed or utilized.
    • Interest: 18% per annum on the amount of wrongful credit, from the date of availing the credit until the date of payment.
  1. Monthly RCM Data (Reverse Charge Mechanism):
  • Interest and Penalties:
    • Interest: 18% per annum on the amount of tax not paid on time under RCM.
    • Penalty: Rs. 10,000 or 10% of the tax due, whichever is higher, for non-compliance.
  1. Party-Wise GST Payment Verification:
  • Interest and Penalties: Ensures that GST is paid correctly by each party, avoiding penalties for underpayment.
  1. Unpaid Creditors Input Reversal:
  • Interest and Penalties:
    • Penalty: Input credit must be reversed if the payment to the supplier is not made within 180 days. Interest at 18% per annum may apply from the date of availing the credit.
  1. Statutory Dues
  2. Monthly Delay in Payment:
  • Interest Rates:
    • TDS: Interest at 1.5% per month on the delayed amount.
    • TCS: Interest at 1% per month on the delayed amount.
    • GST: Interest at 18% per annum for late payment of GST.
    • Provident Fund: Interest at 12% per annum, with a possible penalty of 5% to 25% of the unpaid amount, depending on the delay.
    • Professional Tax: Interest varies by state; generally around 1.25% per month.
    • ESIC: Interest at 12% per annum on delayed payments.

Conclusion

LedgerVision provides monthly reports that enable users to identify compliance issues and take timely corrective actions. These reports help users avoid potential interest and penalties associated with TDS, GST, and other statutory dues, ensuring compliance with financial regulations.. LedgerVision reports are very detailed and informative leads to prompt services to clients and satisfaction.