The month of March is usually a very busy month as it marks the end of the financial year. However due to hefty work some of the compliances may be missed or the books may not be updated fully for the audit, and which eventually will delay the process of audit and filing of Income tax return and Tax audit reports.
Here is the Top 5 list of compliances that cannot be missed in the month of March 22, which when compiled shall result in faster completion of audits.
1) Pay Final Advance Income tax installment by March 15th. All Businesses must pay Advance Income tax of 100% by March 15th if their tax liability for the year exceeds Rs.10,000/-. However, there are certain exceptions to this like senior citizens who can pay tax along with their Income tax returns without paying any additional interest. Non- Payment of Advance Income tax attracts Interest which is about 1% per month till the date of filing ITR which may add additional burden on the business.
2) Do take care of the TDS Provisions of Income tax act. If any of the TDS Deductions on various expenditures is missed the same can be paid now along with interest. Not Complying to the TDS provisions may amount to disallowing of expenditure by 30% and shall increase the tax liability. Further Deducting the TDS later stage may not help in recovering the amount from the supplier.
3) Reconcile Turnover & Input Tax credit as per Books and GSTR 3B, GSTR 1 Returns and if there are any differences or corrections then it can be rectified in the month of March 2022 such that the Turnover of the books matches with that of GST returns. Further any difference can be noted out and explained to the statutory auditor during audit and also to the Statutory Authorities during any inspections or notices if any.
Also, Corrective follow up can also be done to the suppliers who have not filed their GST Returns.
4) Also do Stock counts as on 31st March can be helpful in arriving at accurate Profits for the financial year. Provisions for pilferage or losses can be made based on the stock count.
5) Make all provisions for expenses in the books and pass all the necessary entries in books such that they are ready for Statutory or tax Audit
Hope this list is useful and will sensitize your accounts team to take necessary action.