project report

  Depositing cash from your own sales into a business bank account is legal and completely normal. A notice usually arrives only when the cash deposited does not match what your books, GST returns and income tax return show, or when the total crosses limits that banks must report to the income tax department. We see this almost every month at Sharda Associates . A shop owner, clinic or contractor gets a message about “high value cash deposits” and assumes something is wrong, even though the money came from honest sales. As a CA firm that also prepares project reports for bank loans, we know that clean cash records help in both tax assessments and loan approvals. Here is how the department looks at the numbers, and how you can stay ready. What the Department Can Already See You do not have to file anything for the department to know about your deposits. Banks report certain transactions every year, and these appear in your Annual Information Statement (AIS). The officer compares th...

Short answer: Filing on time only means the return was submitted. The GST system also compares your returns with each other and with other data, such as your suppliers' filings, e-way bills and e-invoices. If the figures do not agree, you can receive an intimation like DRC-01B or DRC-01C, or a scrutiny notice like ASMT-10, even when every return was filed by the due date. Many business owners hear it as unfair: every return was filed on time, tax was paid, and a notice still arrived. In most cases the notice is not about lateness. It is about figures that do not match somewhere in the system. Sharda Associates is a CA-led firm that has prepared over 45,500 CA-certified reports . In loan documentation we see how banks compare GST turnover with the ITR and bank statements, so the same mismatches that cause notices can also delay a loan. This guide explains the common reasons, the notices you may receive, and what to do. It is general information, so check your own notice and the GS...

Quick answer: GST is not applicable on a refundable security deposit received from a customer, as long as it is held only as security. GST becomes payable when the supplier adjusts the deposit against the price of a supply, for example against rent or invoices. Section 2(31) of the CGST Act clearly says that a deposit is not consideration unless it is applied as payment for a supply. At Sharda Associates , our Chartered Accountants (CA) handle GST registration, return filing, contract and invoicing advice, notices and refunds for traders, service providers and landlords, and also prepare CA-certified project reports for bank loans and business funding. Correct treatment of security deposits avoids unnecessary tax outflow and later disputes. What Does GST Law Say About Security Deposits? GST is charged on consideration received for a supply. The definition of consideration in Section 2(31) of the CGST Act specifically provides that a deposit given in respect of the supply of goods or s...